Can someone explain this

As per Miraca Holdings press release, the reason for pennies on a dollar sale is reimbursement cuts from an insurer in November, which were not previously recognized. More than 80 percent of our business is biopsies, and special stains. There have not been any cuts in those CPT codes that we know of. If it were true, other big labs like Quest, labcorp, Dermpath would be screaming and their stocks tumbling. None of this has happened. What exactly is the true story? Someone mentioned BCBS cuts in one of the posts. No truth in that too.

 

You are looking for the one answer. There are a few. First, Miraca Holdings has been unable to realize the financial rewards and market penetration they planned on in the initial purchase. They wasted crucial time with an ineffective CEO and allowed him to promote and keep incompetent SVP's in all areas of the business. The only ones we have left are ones that can't compete in the marketplace. Second, the US marketplace has changed dramatically with constant price pressures and again the executives in place didn't manage the change. The Japanese didn't know how to manage. Don't forget, they still have a stake, probably hoping Avista can improve the business. Who knows...we now have a former tox guy...Not a great start!

 

That does not explain fall from a billion dollars to thirteen. They could have(Japanese) parted out and liquidated for high nine figures. Anyone could buy contracts worth 266 million in sales for way more money.

 

You assume the "billion" was a market price...It was the price Miraca was willing to pay to get in the US market. There were no other bidders at that price and Halbert took the best deal, as he should have. Since that sale the market continues to change and who knows, the value of the $266m could be substantially less in the future.. Maybe Avista can turn it around by exiting the management team, put experienced and ethical business leaders in place and drive the value back up.

 

All is not gloom. Miraca still has shown steady increase in sales volume over the last few years. Rode the hardest time in 2013. What happened all of a sudden is baffling.

 

Something surfaced in due diligence which resulted in 175M deal to fall to 50M.

 

Heard we were sending BCBS cases from other states to PA to be read. that way we would be INN with blue. however, blue figured it out and is now holding payments until theyve recouped their money. or a pending lawsuit...either one.

 

Bravo

 

Is there anything which doesn't go on here?

 

good quality pathology reads "doesn't go on here."

 

Good quantity reads and other schemes go on here. Still can't make money!!

 

we have no lab in Pennsylvania. We are profitable. We could be more profitable if they drain the swamp. Rvp”s are unproven, just know how to brown nose.

 

If you are right, we would have been sold for 700 millions not 13!

 

shifting cases to states where we have better contracts was always our "norm", but the insurance companies figured it out. I thought we were doing that big time in New Hampshire or CT with United. but that's done now cause they figured it out. we just scheme and scheme and scheme.

 

The "schemers" are still part of management team.

 

there is a new sheriff in town. The good old boy network is gone. Heres a novel concept performance not popularity leads to promotions. Hey Scott the problem is we have VP’S and RVP’S that never could sell but they played the game and now try to tell us how to do our jobs bc they are worried about your perception of them. Pull the historical data of their sales, its a absolute joke.

 

Lipstick on a pig.