RE:RE:RE:PHM is done.The volume selling had been dropping off except for today and only spiked after he spoke on bnn. They admitt they are on bnn to satisfy their own self interests. He did say it was cheap so he left the door open to pounding the table on it again when the time is right.
On the next quarter they should show a profit and know how important this is. There are always changes to the rates government pays so this is nothing new. These companies adapt and grow knowing this type of business is needed to help keep costs down but is constantly changing. The government is trying to squeeze on costs everywhere they can but the home monitoring is needed and growing. New monitoring devices come on the market all the time now. Casey did say they are constantly adapting to it and moving to higher margin products. Most of these new products the government does not try and squeeze until they have been in the market for a while and costs have come down. Then they lower the rates on them but they are still profitable to companies like PHM. New devices added they can get higher return rates on for quite a while.
So why are people worried about one device getting a lower rate when there are others they can include to get higher rates on and still grow. They have the cash and knowledge to do it. The government does not want to shoot themselves in the foot and put these companies out of business as they save the healthcare system lots of money.
It is kind of like a new pill that comes to market and the price is high till they all get their return and profit on it then a generic version comes out to lower the price. PHM is basically doing the same thing and realizes they have to keep shifting the product mix as they stated in the CC moving to the newer higher profit devices and away from the ones with the lowest profits. I understand one cannot put a number on it as some wish they could . The bottom line though is this business is growing and will for many years to come. PHM will adapt and grow with it so none should freak over a rate change on a device. They are also as stated looking to add to the customer base and grow that way too using the cash for the highest rate of return instead of a takeout paying goodwill that eats up profit. N3