here is that this company somehow got 16000 professional nurses and therapists in 37 states to put their licenses on the line and commit medicare fraud all for the benefit of the company and then got thousands of individual doctors to sign off on this?
That is the most ridiculous thing I've ever heard. If you think that is what happened then by all means short some more. My little fund and I will continue to buy in at these levels. This company is looking at further acquisitions and has discussed share buybacks. Again, you might want to listen to the conference call.
Good luck with whatever agenda you have but AMED will recover. There is no such thing as 'too many therapy sessions'. Old and sick people actually need more help and attention. It is very hard to take care of old people and it is commendable that someone is there doing this service.
>AMED's homegrown software is full of algorithms that determine how the clinicians answer the questions on the OASIS so that the highest possible reimbursement is generated
That my friend is a bold face lie. They answer the OASIS questions based on the evaluation of the patient. Period. Again, answering otherwise WOULD be putting their license on the line.
And just for your information, I know EXACTLY how homehealth works. Now go cover your shorts while you can at this level.
Are you working for those hedge funds who are manipulating the markets?
If you are so sure of AMED's wrongdoings then sell if you are long and go find something else to do. Looks like you are a short and scaring people off.
And again, you are wrong and have demonstrated your lack of knowledge regarding this industry.
The therapy frequencies ARE determined by the company. The therapists are told what the number of visits will be and they go do them. AMED's homegrown software is full of algorithms that determine how the clinicians answer the questions on the OASIS so that the highest possible reimbursement is generated.
These clinicians are not putting their license on the line in any way whatsoever when they follow a frequency set by AMED. It was very clear through the company what the therapy thresholds were. Do you know of any case in which a clinician's license was compromised due to a billing/reimbursement problem with the company they worked for? No, you don't.
I understand and have been long too... I am not sure their is clear fraud but there is evidence of increased nursing visits per patient between 2007 and now. I am not sure one can define fraud as doctors have signed off on the orders and followed their recommendations. Nurses and trained therapists had suggested this, and everybody can't be taken down. Now the question is whether the whole industry was doing this.
I see ROE of 15% in 2006-2007 before any of this happened. On a book of 28, that leads to earnings of $4.2. Hence the stock is cheap.
Question is whether it is going to get cheaper. Whether Amedisys and others are going to have to pay a fine. I think Medicare commissions are going to make more noise...
I would love to know whether visits per patient increased for other competitive companies or just Amedisys.
As they said in the call, their case mix has changed pretty dramatically from low-level long term chronic patients to higher level ortho patients who need less nursing visits which pretty much proves the point. IMO this was a well orchestrated hedge fund slash & dump.