I am pleased and gratified that after one week of silence since I sent my letter to Gail Page (NYSE:CEO) and James Burns (Chairman of the Board), they finally responded. As a shareholder, however, my happiness ends there. The 8K issued by the company today was notable mainly for what it did not dispute.
To wit, the high Medicare denial rate of over 80%, which was the essence of my original letter. To the contrary,the company's response struck me as an implicit admission that reimbursement rates across the board are in this same ghastly range. Management might or might not be correct on the 18% figure on Medicare's share of the volume -- my "approximately 50%" estimation was based on information that I received from reliable source.
Indeed, the fact that Page cherrypicked a less relevant fact and tried using it to discredit my whole letter is disappointing to say the least. Page rides roughshod over the rights of her shareholders, to whom she owes fiduciary duties of candor. I would encourage her to come clean to investors on numerous additional outstanding issues as well.