UPDATE 1-HealthGrades sees 20 pct revenue growth in '09

Dec 17 (Reuters) - HealthGrades Inc (HGRD.O) expects 2009 revenue to increase by about 20 percent over 2008, driven by strong growth in its biggest segment, Provider Services, which includes hospital marketing and quality-improvement programs.

HealthGrades, which provides ratings and profiles of hospitals, nursing homes and physicians, also reaffirmed its 2008 ratings and advisory revenue outlook.

"Patients and others are increasingly seeking healthcare information over the Internet, and then acting on that information," Chief Executive Kerry Hicks said in a statement.

The company also forecast 2009 operating margins of 17 percent to 21 percent. It expects revenue from the Provider Services segment to grow by about 15 percent.

Shares of the company were flat at $1.55 in morning trade Wednesday on Nasdaq. (Reporting by Anand Basu in Bangalore; Editing by Vinu Pilakkott)