RE:RE:RE:Merry Xmas Investors! :(snootchybootchy wrote: Thanks, Monty613. These are all reasonable thoughts. But the question is whether there are other service agreements at risk? Hopefully this is a one-off.
Read up on United Digestive - they were acquired by a Private Equity firm in 2018 which is likely driving this. What I am most curious about is where they are going for their anesthesia now and what the reasons for the non-renewal were. One thing I am not really up to speed on is CRH's competitors (as far as I know, they are the only public company in this space).
Note that CRH's other service agreements are MUCH smaller in scale and I believe they are mostly with regional groups of GI physicians, rather than larger companies with private equity backing like UD. I would think these have an easier chance of straightforward renewals.