Air Methods expects higher health care costs in 4Q

By Associated Press
January 27, 2009 | Comments (0)

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Air Methods Corp., which provides emergency medical air transportation, said Tuesday its health care costs surged nearly 40 percent per employee in the fourth quarter.

The company said its preliminary health care expenses for fourth quarter 2008 rose to $1.2 million, or 6 cents per share higher than the prior-year period. The company said the expenses were mainly caused by several large individual claims against the company.

"While the unusual increase in large individual health care claims was unanticipated, we do not expect a continuation of this higher expense level in future quarters," said Chief Executive Aaron Todd.

Shares of Air Methods rose 40 cents, or 2.1 percent, to $19.86 in afternoon trading.

(This version CORRECTS time element in lede.)

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