The intermediate energy R-matrix (IERM) theory, first introduced by Burke, Noble and Scott, has been applied to electron scattering by atomic hydrogen by Scholz, Scott and Burke and Scott, Scholz, Walters and Burke. In principle, the only approximation inherent in this approach relates to the treatment of the scattering wavefunction in the external R-matrix region. Here the couplings between the channels of interest and all other physically open channels are neglected. We demonstrate that these couplings are small in this region of configuration space and hence that the IERM theory includes the physics which dominates intermediate energy scattering. The mechanism for the formation of pseudo-resonances in IERM calculations is also described along with the averaging procedure used to extract the physical T-matrix elements. We show that this procedure removes the unitarity of the S-matrix and therefore accounts for the flux lost into channels not explicitly included in the external region expansion of the scattering wavefunction. Calculations which explicitly include a large number of pseudo-channels are reported. The resulting T-matrices are found to be in agreement with the averaged results hence validating the T-matrix averaging procedure.