Well..........what are your facts.........????? to support this assertion......
They may be reimbursed by Medicare for some or all of their services provided to Medicare patients.......but, If they can prevent or limit a significant number of hospitalizations ...or surgeries.......or.......well, the point is....if they can provide monitoring or point of care services at X dollars...and they, in so doing, permit the patient to avoid care that is priced at XXX dollars....then they are a benefit to Medicare and third party payers.
I like Alere as an acquisition target for a very large corporation. Where else can you find a well put together group of focused diagnostic and healthcare management companies? If you believe the Chairman's message, you might also believe that packaging up this group of companies matters more than the goodwill overhang.
You should be careful with the book value of this firm. It has done a large amount of acquisitions, and as a result has accumulated a large amount of goodwill (3.5B) and intangible assets ($1.7B) on the balance sheet.
Goodwill alone is over half of the assets of the firm. This is out of proportion and as a result tends to overstate the book value.
If you look at the tangible book value you will find that it is actually negative.