OCA (10)
Question
by: YRdoc 08/31/05 05:57 pm
Msg: 37577 of 37781
One of the two Texas suits involves 16 or so centers. The other involves 3 - 4 additional affiliates, and an unknown number of centers. I don't think OCA is going to let go of these situations without a fight. Unless, of course, the banks refuse to let them keep funding the litigations.
The simple solution would be to provide excellent service and charge a fair fee. In my experience, OCA would prefer to provide little service, overcharge, and then attempt to force docs who become satisfied into submission via the legal process. I've heard rumors of legal bills for OCA running $1 million plus per month. (They tried to stiff Jones Day alone for about $2.5 mil.) That money could go a long way toward helping the bottom line, as well as providing an exemplary level of management services.
But compared to mental giants like those in OCA's senior management ranks, what I do know? After all, I'm just a dumb orthodontist - a statement I'm sure would find wide agreement in their Metairie headquarters.
All MHO, of course.
Response
by: chfriend03 08/31/05 06:32 pm
Msg: 37580 of 37781
Of course, the 2 cases in Texas would settle, along the same lines of previous settlement in Texas. What is the difference between these two cases and the one on "Pen.. vs. OCA"? Any reason for any party to not settle?
As for the rumour of legal fees, that is way out of line. In fact, after the May settlement, by far the most of the innactive affiliates are not in litigation at all. I guess OCA should be talking to them on settelement before any lawsuit is filed.
I read from OCA's annual reports that:
OCA had 360 centers (not affiliates) at end of 1997.
By the end of 2000, OCA had 592 centers (after Apple Orthontix acquisition, but before OrthoAlliance acquisition).
From early 2001 to the end of 2004, OCA basically acquired and then lost the OrthoAlliance affiliates. I believe OrthoAlliance had 200+ centers, but from day 1 of acquisition, many affiliate were not onboard and they were innactive. The OrthoAlliance affiliates are usually mature and bigger compared with the other affiliates of OCA.
The OrthoAlliance acquistion was the biggest mistake made by OCA.
Here is a basic question to the shorts: If the affiliates were deserting as to threaten the company's survival, then why would the CEO put another $1 of his personal money (unsecured loan to OCA, in addition to the $2 million unsecured loan made in June) into the business?
I wouldn't if the business will be failing. I am sure that he is not doing charity.
by: YRdoc 08/31/05 05:57 pm
Msg: 37577 of 37781
One of the two Texas suits involves 16 or so centers. The other involves 3 - 4 additional affiliates, and an unknown number of centers. I don't think OCA is going to let go of these situations without a fight. Unless, of course, the banks refuse to let them keep funding the litigations.
The simple solution would be to provide excellent service and charge a fair fee. In my experience, OCA would prefer to provide little service, overcharge, and then attempt to force docs who become satisfied into submission via the legal process. I've heard rumors of legal bills for OCA running $1 million plus per month. (They tried to stiff Jones Day alone for about $2.5 mil.) That money could go a long way toward helping the bottom line, as well as providing an exemplary level of management services.
But compared to mental giants like those in OCA's senior management ranks, what I do know? After all, I'm just a dumb orthodontist - a statement I'm sure would find wide agreement in their Metairie headquarters.
All MHO, of course.
Response
by: chfriend03 08/31/05 06:32 pm
Msg: 37580 of 37781
Of course, the 2 cases in Texas would settle, along the same lines of previous settlement in Texas. What is the difference between these two cases and the one on "Pen.. vs. OCA"? Any reason for any party to not settle?
As for the rumour of legal fees, that is way out of line. In fact, after the May settlement, by far the most of the innactive affiliates are not in litigation at all. I guess OCA should be talking to them on settelement before any lawsuit is filed.
I read from OCA's annual reports that:
OCA had 360 centers (not affiliates) at end of 1997.
By the end of 2000, OCA had 592 centers (after Apple Orthontix acquisition, but before OrthoAlliance acquisition).
From early 2001 to the end of 2004, OCA basically acquired and then lost the OrthoAlliance affiliates. I believe OrthoAlliance had 200+ centers, but from day 1 of acquisition, many affiliate were not onboard and they were innactive. The OrthoAlliance affiliates are usually mature and bigger compared with the other affiliates of OCA.
The OrthoAlliance acquistion was the biggest mistake made by OCA.
Here is a basic question to the shorts: If the affiliates were deserting as to threaten the company's survival, then why would the CEO put another $1 of his personal money (unsecured loan to OCA, in addition to the $2 million unsecured loan made in June) into the business?
I wouldn't if the business will be failing. I am sure that he is not doing charity.
posted by jajabin at 3:39 PM
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