This isn't about CMS......because overall the 5 to 4 change would be about the same profit reduction as the profit increase from cheaper interest on debt.
This is really about the potential that the insurance industry might reduce reimbursement rates based on the actions of CMS.
At the last cc, the company indicated that they didn't foresee any reduction in CMS reimbursement rates. I took that as a proxy for saying that they didn't see any changes to private insurance rates either. (They have said in the past there's no change anticipated in this regard.) I no longer make that assumption and I don't think the market is now doing it either. (One could claim that the market is ticked off with management, and I wouldn't disagree with that.)
I could be wrong, but I'd rather not be exposed to further risk here.
BTW, I stick to my conviction that this investment is now and always was about cash flow. It's interesting to note that folks like digitel who cried about colonoscopies and anesthesia being unnecessary were completely off base.
Best of luck to those who hold. This could still be a very good investment, but it all hinges on private insurers' reimbursement rates, and these will be an ongoing issue IMHO.
I got in here way before anesthesia came along and for that I'm grateful. I feel for others who are losing money.