CHICAGO—NovaMed (Nasdaq: NOVA), which operates ambulatory surgery centers (ASCs) in partnership with physicians, reported net revenue of $38.2 million for the second quarter ended June 30, 2010 compared to $38.9 million in the prior year second quarter. Same-facility net revenue declined 1 percent for the quarter.

Net income from continuing operations attributable to NovaMed in the second quarter of 2010 was $1.8 million compared to $2.3 million in the prior year second quarter. Net cash provided by operating activities in the second quarter of 2010 was $9.3 million and distributions to noncontrolling interests, which are included in net cash used in financing activities, were $3.7 million. Net cash provided by operating activities less distributions to noncontrolling interests was $5.6 million.

“Although we saw a significant improvement in our same-facility revenue growth in the second quarter, we continue to be negatively impacted by the general economic conditions,” commented Thomas S. Hall, chairman, president and CEO of NovaMed. “We believe that high unemployment as well as a lack of consumer confidence is responsible for the softness in surgical procedure volumes in our industry as some patients postpone procedures recommended by their physicians.”

Hall added, “Demographic trends clearly support long term growth for procedures performed in ASCs. While we are not happy with the current softness we are experiencing, it is important to remember ASCs serve a critical need in the health care system. We represent the lowest cost setting with the highest quality outcomes and are preferred by patients, payors and physicians. ASCs and NovaMed are part of the solution.”

NovaMed also reported that on June 18, 2010, a wholly owned subsidiary sold substantially all of the assets of NovaMed’s MDnetSolutions business.