Premier Health of America Inc PRHAF

What if …

[Torontojay]

the new bill gets passed and private agencies are eliminated in Quebec?  I guess my first question would be, what's the likelihood that this law passes? My next question would be, what would happen to the share price and profitability of the company if such a scenario took place? I mean, they would be stuck with all the debt from previous acquisitions but without the cash flows from the Quebec province. That would be absolutely criminal but I'm not surprised as Canada is turning into a socialist society.  

As I've said before, the elimination of these agencies will just compound the problem the healthcare industry is facing. Nurses will quit the industry altogether as you cannot force someone to take a position they recently left from. 

On the plus side, the company has a solid history of acquiring companies at very cheap valuations and that will serve them well in the Ontario province. 

Also, no insiders are selling which is a positive sign as well as share buybacks which reinforces my belief that the company is not worried.

[Stonksonlyup90]

Insiders can't sell if they are currently engaged in discussion with Quebec gov't and have knowledge that is non-public. I wish it weren't the case, but frankly the risk-reward has been impacted significantly by these comments from Quebec and new proposed bill... I wouldn't put it past the Quebec gov't to push this bill through - when in reality they are likely to do more harm

[Torontojay]

Why couldn't insiders sell? They've already made this information public so it's a fair playing field. Also, I see the that the Ceo made a transaction after the news story was released. From the md&a  We again suffered from chronic changes in the Quebec government's directives which imposed caps on hourly rates and we could bill for services. These directives were

[colourama]

Here's the thing I don't understand about the proposed bill: Private temp staffing solutions exist precisely because of gaps in the public healthcare system. These healthcare workers in the private sector are a small fraction of the total healthcare workers in the province and presumably work there in preference over the public for various personal reasons. A large majority of them, when

[Torontojay]

Exactly Colourama, well said! I don't think it's going to work because, as you said, it's going to exacerbate the problem they're in. They will probably just have cap rates on what can be charged by these providers. I believe this is the most likely outcome and a win/win for both parties.   

[colourama]

I also think a cap on rates is what they might do - this allows the government to say they are doing "something", but also allows the need for filling the gaps in the healthcare system to continue. (But since this is the government we are talking about, anything could happen.) I don't know the competitiveness of PHA versus other private staffing agencies that are operating, but if

[pennylane101]

With the provinces currently in negotiations with the federal government over healthcare funding, this bill which is vague and lacks specifics could be an attempt by the Quebec government to get more money from Trudeau.  Although I don't see how eliminating private agencies from covering shortfalls in staffing and being at the mercy of and relying solely on unionized labour will save tax