Just listened to the replay and FWIW:
1. This company is soooooo far under the radar of any critical mass of investors.
2. The basic model is: SPIN waits until an injury case has been developing for 4-5 months. They then decide to lay out the cash for a spinal procedure (around $5,500 per shot with some cases requiring more than one shot).
3. The idea is that if the blood sucking lawyers are still with the case after 4-5 months, some serious cash is gonna' be paid out at some point in the future.
4. By fronting the money for the procedure, SPIN validates the injury that the person has; this validation currently isn't possible without SPIN because doctors cannot "order up" (and be reimbursed for) the tests that SPIN provides. ( This is a biggie)
5. SPIN pays doctors a guaranteed fee for their services which is less than the actual amount they plan to eventually collect. The doctor gets paid less than the total amount, and if all goes according to plan, SPIN makes some extra cheese on the collection end.
6. The collection process can take years. Statistics around collection, ie, % of cases that don't pay off, wasn't clearly addressed during the CC, but SPIN sounded fairly optimistic. Based on the screening of cases that happens as part of #1 above, SPIN eliminates a lot of potentially dead end cases by not accepting them.
7. The good Dr and CEO has a lot of money invested here and has no interest in printing shares at these prices. He speaks of reaching a tipping point: a certain number of clinics will make the SPIN model self-perpetuating and self-funding
8. Expansion will be slow and measured, with clinics and cities added in the single digits in the short term. Don't expect a 10 bagger overnight.
Conclusion: The SPIN team and the SPIN model present as a work in progress, with some indicators of success to date. They are old-school med biz dudes who see a hole in the system and have devised a way to make some money filling the hole. If your investment money has a couple of years to wait, (and the CEO (72) is still actively involved with the business), the potential for reward far outweighs the potential risk at the current PPS.
