Good morning. My name is Kimberly, and I will be your conference operator today. At this time I would like to welcome everyone to the IntegraMed third quarter 2009 investor conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. (Operator instructions). Thank you. I will now turn the call over to John Hlywak.

Good morning. This is John Hlywak, Executive Vice President and CFO of IntegraMed. Thank you for participating in today's call. Joining me today is Jay Higham, President and Chief Executive Officer. Before we begin, I'd like to caution that comments made during this conference call by management may contain forward-looking statements that involve risks and uncertainties regarding the operations and future results of IntegraMed. I encourage you to review the Company's filings with the Securities and Exchange Commission, including without limitation, the Company's Form 10-K and Form 10-Qs, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. The content in this conference call contains time-sensitive information that is accurate only as of today, August 6, 2009. IntegraMed undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call. With that I'll now turn the call over to Jay, President and CEO of IntegraMed. Jay?

Thank you John, and good morning to everyone on the call and thank you for joining us today. Overall during the third quarter we continue to perform well despite emerging evidence of a challenging environment for consumers in the self-pay components of our business. Although historically our business has proven to be remarkably resilient to economic fluctuations, we saw increasing signs in the third quarter that we not completely immune to the impact of a prolonged economic contraction as the ability of perspective patients to pursue fertility treatment in particular was ultimately impacted. Despite a few key factors that I’ll review in greater detail shortly, our overall business achieved revenue growth of 3%, a 1% increase in total contribution, a 12% increase in net income and an 8% improvement in reported EPS. But before reviewing our results in more detail, let me take a few minutes to address the restatement of our financial results that we referenced in this morning’s press release. As you may remember fom earlier in the year at our tri-annual revue, the SEC approached us regarding our revenue recognition methodology within our Consumer Services Division. At that time after an extensive dialogue with the SEC and our auditor we reversed the recognition of approximately $3.5 million in the revenue in the Consumer Services Division with the expectation of spreading the timing of these revenues over a longer period, while also increasing a loss reserve we book for patients who achieve pregnancy but who may require further treatment or a refund in the event of pregnancy lost. The changes affect not affect cash flow or the ultimate profitability of the program, which is fully funded by patients at the time they enroll. Fast forward to last week and upon closer review of our new revenue recognition methodology…

Thank you Jay. As Jay alluded to, despite some new-term challenges the overall strength diversity of our business model enabled us to weather the challenging economy as deliver modest top line growth and stronger bottom line growth. Overall, total revenues grew to 3% to $53.6 million compared to Q3 of 08, while net income grew 12% and earnings per share grew 8%. At the divisional performance level, Fertility Center revenues declined 1% to $36 million in the third quarter, reflecting some slowdown in consumer demand as well, the impact of the loss of a third-party payer contract that represent approximately $2 million foregoing revenue for the period. Absent the contract loss, we believe Fertility Centers would have turned in a modest revenue increase. As Jay has reviewed in previous statement the third-party lending transaction and the declining pregnancy rates I will not comment further. Reflecting these issues as well as the impact of the challenging economy on consumers' ability technology interoperability to pursue fertility treatments, Consumer Service revenues declined 7% in the third quarter to $5 million. However, it matched the revenues on a sequential basis confirming that the demand remains healthy but there it is being effective by available funding. Patient applications increased modestly compared to the prior year as well as compared to the prior quarter. Our Vein Clinics division experienced positive top line trends during the third quarter with revenue growing 22% to $12.6 million with a 16.7% same-store growth providing $1.7 million of the increase and revenues from new clinics providing the remainder. Organic revenue growth in this division reflects the benefit of our patient recruitment programs and stimulating good patient demand. Importantly, the leading indicator for this business new consults achieved a 37% increase in the third quarter compared to the last year showing continued…

(Operator Instructions).Your first question comes from the line of Greg Williams of Sidoti.

Good morning guys, there’s a couple of quick questions. Jay you mentioned the modest decline in the IVF cycles, do you have a feel or do you think that this segment sort of bottomed out in the third quarter, you think there is a little bit more softening that you're going to be working through them?

It's really hard to say Greg; I mean it all depends on what happens with consumer credit, employment. I guess I am focused a little bit more on the Consumer Service side of it, because where this situation played out in much higher relief then if did in the Fertility Centers business where we just look at IV of cycles themselves. In the Consumer Service segment our feeling is that we've bottomed out, from an enrollment point of view we bottomed out in the second quarter. Enrollments in the second quarter if you recall were down 15% compared to the prior year. We]'re only down 6% in the third quarter compared to the prior year and I was just informed by the head of our Consumer Service business as I walked in here this morning that we had record month of applications in the Consumer Service business last month. So it feels like that’s bouncing back. Certainly the credit financing situation with Springstone was going to contribute to that. I also thing that our product development capability in that business where we’ve introduced a lower price point product in that businesses is really helping as well. I mean here is a variety of issues ongoing that I think are going put us in good stead in that business. Almost regardless of what happens with the economy. I mean, if the economy back fasted that will certainly help. we feel confident that we are going be able to grow that business regardless.

Okay, and you mentioned Jay, I'm sorry I missed it that Springstone is now a partner, when did that begin?

We just launched it. We announced it yesterday, so we just launched it and we're just gearing that whole program up and like I said in my comments, we expect lending to begin flowing later this month and we will accelerate through the balance of the fourth quarter.

Okay, I may have missed it or may be you didn't issue, but did you guys give a same-clinic sales for your partnership?

I'm sorry, I missed the question.

The same-store sales.

Same store sales for…?

For fertility.

For fertility, okay all of the revenue they see there is same-store because, we haven't a deal, a transaction in the year. I might mention in this, I run the risk here of confusing people a little bit slightly but we don't, in that business we don't report patient billings. What we report is management fees and patient billings in that business have actually increased, despite the fact that we lost that big payer contract that we mentioned earlier, our patient billings are actually up 2%. So, that business is remarkably resilient. It is resilient and resistant for a couple of reasons, one being just the nature of the service that we're providing, which has a high emotional component for patients when they want to have a baby they generally figure out how to do that. Second reason that there is some resilience in that business is that we're completely dependent on self-pay. We have a broad range of services, half of our revenue is self-pay in that business but the other half is insurance reimbursed and we've seen that insurance reimbursed pieces of business growing over the last years as patients have begun to be more price sensitive and substitute insurance reimbursed procedures for those that are more self-pay.

Got it. Then then switching over to the Vein Care, Jay I think you mentioned that there’s some fresher in reimbursement from insurance companies, is that a isolated markets or just a systemic issue?

I don’t want to say, we haven’t received a reduction in reimbursement in any these markets we’ve been in. What happens is the core of that business is the Chicago market, which is where the company was founded, we tend to have better reimbursement in that market than in some other markets. As we entered new markets we begin to get more exposure to other reimbursement rates and what we have noticed is that in some markets those reimbursement rates are somewhat lower but no, we haven’t had a reduction in reimbursement.

Okay. Thanks. Then switching over to the equity loss, can you just help me out in terms of the timeline that the pricing, road show and the placement?

Sure. Okay, well you know we do have a registration statement out there. So I have some significant limits on what I’m able to say here.

Sure.

I guess what I would say is that, this is a strategic issue for the company. It's not an operational issue. We have sufficient capital available to continue pursuing our business strategy. We are out there with that registration statement because we are identifying through a confluence of events really. The economy being one of them that there is a opportunity to accelerate our business development, principally, in the Fertility Center segment of our business, and we would like to be able take advantage of that. We have fair amount of cash in the balance sheet. We do need a certain amount of that to run the company, so really what is available to us to pursue these acquisition opportunities may be half of what you see there on the balance sheet, and some of the bigger, there are some bigger transactions out there that we would like to pursue and would need to raise funds to be able to do that. With that said, I really don’t want to speculate on timing at the moment.

OK understandable. Just want to question on the new accounting treatment. I was hoping that you guys will provide me, like a full year 2008 EPS if I am reading it right it looks like the first nine months you are at $0.33 cents, which is actually a nickel ahead of the prior statement?

Greg, the way to do this is, we will be filing our revised 10-K obviously, but let me just give you the order of magnitude here. There was about $780,000 of additional revenue that we needed to book. Take out the deferred revenue and put back into Consumer Services in 2008 and virtually all of that goes right down to contribution.

Okay, so it is material upside on EPS.

Absolutely.

Okay. Thank you.

(Operator Instructions). There appear to be no further questions at this time.

Well, thank you everybody for joining us here on today’s conference call. We look forward to seeing you in the future and updating you on our progress. Thanks very much.

Ladies and gentlemen, this concludes today’s conference. You may now disconnect.