Premier Health of America Inc V.PHA

Premier Health should be treated like a stock option

[Torontojay]

You either stand to win a lot of money or you lose your principal. It would be very difficult for Premier Health to stay in business given the debt levels if Quebec implements this bill. Canada has become such an authoritarian regime that the free market approach has been thrown out the window. Too much government regulation and overreach is bad for the economy.

I would treat this stock as a stock option. Don't have too much of your wealth/capital invested because you could lose it all. If you are willing to tolerate additional risk without being heavily invested, then this could pay off big time.

[CauseWhyNot]

Although I agree with you on the debt level worry, it's my understanding the loans were specific to the acquisition and the ebitda of the company they were buying had to support the loan amount. (I could be seriously wrong here). But if that is the case, they could lose quebec altogether and still support payments. how far am I off?

[CauseWhyNot]

Haha they guy/s with blocks of stock for sale tend to disagree with me... anyone speak with management ?

[Torontojay]

I don't see how the company can piggy back off the Canadian operations alone and be profitable.  You have added interest expense costs rising, and corporate costs that would wipe out any money left over from CHCA nursing. Goodwill impairment from the Quebec operations would significantly reduce book value.  Remember, the company doesn't hold a lot of tangible value. They

[Torontojay]

* Canadian operations should read Ontario operations.  Im not trying to be political here :) 

[pennylane101]

I think you're being an alarmist here.  This is a long term plan i.e., 3 years and the bill hasn't even passed.  Furthermore, PHA has other clients besides the government and didn't the Quebec government put out tenders in Dec 2022 for contract renewals?  Here is the title of the article: Quebec ready to grant more than 8 million hours of health-care work to private

[CauseWhyNot]

Thanks for sharing 

[colourama]

Thanks for sharing - I thought this (opinion) piece was also relevant on the same topic, from Dec. 2022: https://montrealgazette.com/opinion/opinion-private-sector-has-a-role-to-play-in-revamping-health-care In it, they say (I haven't verified sources) that in France, "private companies and non-profit organizations account for 40% of care providers in the governmental insurance plan