Operating margin was calculated based on subtracting operating expenses from total operating revenue (inpatient and outpatient), net of discounts from managed care contracts.

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Pumps, purifiers and waste-management systems now account for 38% of total revenue and 45% of operating margin.

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In the most recent quarter, for instance, total revenue rose just 3.4%, but due to operating expense control operating income rose 4.0%, net income rose 9% and net income per basic share rose 11.3%.

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