Looking good? How can this company look good?
They have no assets to speak of, no revenue to speak of... and they're acquiring a VERY troubled healthcare company! By troubled, I mean that the company's sister company (America's Health Choice, Inc.), under the same ownership, recently had it's license revoked by Medicare and is under contuing Federal investigation. Press reports quote a Federal official as stating that she could not rule criminal prosecution against the principals of the company out! BTW, one of the principals is IWWI's CEO's mother! The CEO of IWWI was the former VP of Sales of AHC, as listed in his bio in one of the very creative "analyst" pieces I have seen.
The reason that Medicare revoked the company's license was for QUALITY OF CARE issues... care that was being provided by Medical Resources, LLC (the company being acquired by IWWI), whose offices were raided as part of the investigation!
Further, I find it hard to believe that in the press release announcing MRLLC's financials, it was not disclosed that the company's revenues were derived from one, and only one, source... which was America's Health Choice! That revenue stream is GONE! They have scrambled to replace it... but in reality will be lucky to retain a fraction of the revenues they enjoyed in '06 and '07 going forward.
Could this be the reason for the late filing of the 10K? What auditor will sign off on this mess?
Recent article:
Medicare Advantage Plans by America’s Health Choice Terminated in Florida
Centers for Medicare & Medicaid Services cite delays and denials
July 25, 2007 - CMS on Friday terminated Medicare Advantage plans run by America's Health Choice of Vero Beach, Fla., citing delays and denials of medical care, the South Florida Sun-Sentinel reports. The termination, which affects about 12,000 beneficiaries, is the first CMS has made for quality-of-care reasons.
CMS began investigating the insurer in January after beneficiaries complained about treatment authorization delays, medication errors, a lack of access to specialists and poor-quality medical care at company clinics, according to the Sun-Sentinel.
Abby Block, director of the CMS Center for Beneficiary Choice, said the agency received additional details about the plans from employees and conducted a surprise inspection a few weeks ago, which led to the termination.
The company's quality problems posed "an imminent and serious threat to the health" of beneficiaries, according to Block (LaMendola, South Florida Sun-Sentinel, 7/21).
Block said CMS was unaware of any harm to beneficiaries caused by substandard care but it had "to act quickly before that occurred" (Wessel, Orlando Sentinel, 7/21).
The investigation is ongoing and criminal charges could be filed against AHC executives, Block said.
AHC said it would not seek a reversal of the decision in court, and in a statement said that it would "work with [CMS] during this transition."
All beneficiaries were switched automatically to MA plans run by the UnitedHealthcare subsidiary Secure Horizons, which offers plans with similar costs and benefits as AHC plans.
Secure Horizons will cover beneficiaries' medical bills until Sept. 30, at which time beneficiaries can switch to another health plan or to traditional Medicare. Block said, "Everything will be paid for. They need have no concern there will be any interruption in services" (South Florida Sun-Sentinel, 7/21).
