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Viemed Healthcare Inc VMD

Viemed Healthcare, Inc. through its subsidiaries, is a provider of home medical equipment (HME) and post-acute respiratory healthcare services in the United States. The Company’s service offerings are focused on effective in-home treatment with clinical practitioners providing therapy and counselling to patients in their homes using cutting edge technologies. The Company’s products and services include Home Medical Equipment, In-home sleep testing, and Healthcare staffing. Home Medical Equipment provides respiratory and other home medical equipment, including home ventilation, bi-level positive airway pressure (BiPAP) and continuous positive airway pressure (CPAP) devices, percussion vests, and other medical equipment. In-home sleep testing provides in home sleep apnea testing services. Healthcare staffing provides healthcare staffing and recruitment services. The Company provides home medical equipment services through its interest in East Alabama HomeMed, LLC (HomeMed).


NDAQ:VMD - Post by User

Bullboard Posts
Post by boboboton May 07, 2019 10:42am
184 Views
Post# 29719376

AR and provision

AR and provisionHey guys, I don't post much on here am a follower of this board and have held most of my shares since the spin out from PHM. I am trying to better understand what us currently my best performing holding. I have a question that relates to the AR provision. Per the financial stmts total AR is 17.5M and the provision is 5.8M for a net AR of approx. 11.7M. The provision is 33% of AR. Why is it so high? Further, when i read the credit risk section of the MD&A, it notes that 60% or 10.5 M of AR is for Medicaid and Medicare. The note states there is very little credit risk for this as it is government. Should I be reading this to say that the bulk of the provision then is related to non medicaid/medicare customers? If so that means that of the majority of the non government AR of 7m (17.5-10.5) is covered by the provision of 5.8M. Meaning that mgmt expects to not collect 82% of non government AR? This seems way too high. Can someone explain what I am missing? Apologies for my lack of knowledge on the subject.
Bullboard Posts