RE:RE:What if … Why couldn't insiders sell? They've already made this information public so it's a fair playing field. Also, I see the that the Ceo made a transaction after the news story was released.
From the md&a
We again suffered from chronic changes in the Quebec government's directives which imposed caps on hourly rates and we could bill for services. These directives were in force until December 31st, 2022. They were cancelled on January 1st, 2023, but they may be reinstated if Bill 10, which was tabled to the Quebec National Assembly on February 15, 2023, is adopted. The Quebec government has expressed an intention to gradually curtail the use of private agencies in healthcare services. It remains uncertain if, in the current context of labour shortages, such an objective is achievable and well advised. Bill 10 is short and lays out no specific measures to be instated. It provides the Health minister, a vast array of powers to determine how to allow or deter the use of private agencies through the adoption of rules or directives. Considering the current fragile state of the labour market in Quebec, it will be a complex exercise for the Minister to issue directives that will not aggravate that situation in the Quebec Healthcare system. The Health Minister and the Prime Minister have publicly asked unions to accept exceptional measures aimed at motivating the professionals in the private sector to reintegrate the public system. It is unusual for unions to compromise.
Also, the labor shortage and inflation we are currently experiencing in Canada caused an upward pressure on the salaries of our staff running operations and administration. The further development of our LiPHe software and the ramp up of our ERP will improve the automation level of our processes and thus help in countering and limiting the impacts on profitability margins.
The consequences of Bill 10 in Quebec are still murky. Considering the current staffing shortages in Quebec, it is unlikely the landscape will change overnight. We will adapt as best we can as directives are issued, in theory we believe our resources can be deployed in other regions, perhaps elsewhere in Canada if rules evolve and a national practice standard is adopted.
Risks Related to draft Bill 10 tabled on February 15th, 2023.
On February 15th, 2023, the Quebec Ministry of Health tabled a draft of Bill 10 which aims to regulate the use of private staffing agencies in the Quebec healthcare system. Amongst others, the bill covers most of the services provided by us.
At this time, the Bill defines no real action to be undertaken by the Minister, but it would provide him with a vast array of powers to issue directives that he deems fit to achieve the goal of reducing agencies’ involvement in the system. On announcement of this Bill, the Quebec government stated that their objective was to gradually eliminate the need for private agencies between now and 2026. They also stated that such an objective would require the unions to be constructive in finding ways of convincing the private sector employees to reintegrate the public system.
Although we feel that private agencies serve the important purpose of offering flexibility to both the employees and the institutions, and furthermore since there is a serious labor shortage and a survey shows that private sector professionals would rather find another occupation than to go back in the public sector, there remains a risk that the government could make it unprofitable for us to continue operating in Quebec.