I'm sure any required appraisal will sustain valuation to support any buyout number on IHCH. I don't see an issue in getting to closure. I don't see an appraisal as necessary to clearly understanding Value, just a step that should affirm (if they have a legal requirement in this case..no argument there). In fact, any appraisal might discuss the risks and provide a lower valuation than $23 Million. Paying $46 Million for something historically valued at $22-23 Million makes the legal requirement for an appraisal moot, and why it probably is an unnecessary step (IMO). So, it's a pointless argument. I certainly have issues with a high value on a business that's lost 1/3 of its admissions going into a paradigm that operates with admissions as its primary basis to derive income.
Don't you think the appraisal from the Tenet purchase has at least a good basis as starting point before the decline in the business is considered? That was about $22 Million after they spun-off the land and buildings to the Real Estate investment group in 2005.
Do you think that 3.5 Cents ($23 Million) is fair or too much after the decline in business and the risk in forward money? Maybe he should only offer 3 Cents and forget any multiple. After all, Chaudhuri paid 3 Cents for his last blocks of shares purchased.
I think he'll do right by his partners, so I'm still thinking he'll pay the 7 Cents, which should pass any appraisal with flying colors (IMO).
It's nice they are finally getting all this overdue money to back-fill the huge debt hole and help restore value, but one-time payments don't operate in a forward look unless they continue to the same level, which they are not. The downtrend of QAF under the old bill is in evidence and the new bill re-prioritizes the money with the hospitals 4th on the list. DSH also phases-out (from the 10-K):
"Commencing in federal fiscal year 2014, Medicare Disproportionate Share Hospital (“DSH”) payments will be reduced initially by 75% and increased thereafter to account for the national rate of consumers who do not have health care insurance and are provided uncompensated care."
"As of March 31, 2013 and 2012, estimated DSH receivables were $5.9 million and $5.0 million, respectively."
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