OCA (11)
Question
by: YRdoc 08/31/05 08:47 pm
Msg: 37589 of 37781
After OCA lost the Hobson case, other docs began piling on, alleging similar overcharges. I know that in an Ohio case, a Motion for Summary Judgment was awarded to the doc. The court found that OCA had not only overcharged, but that they breached their Fiduciary Duty in doing so. I believe that case settled shortly after without going to trial, which would have basically to figure out and award damages. I believe other suits based on overcharges have also settled in the doc's favor short of trial.
By OCA's own admission, further De Novo expansion is now dead, due to the banks' unwillingness to pour any more money into the situation.
Other than blind faith and a lot of hope, I don't see much positive on the horizon. But I'll also admit my biases, which are not exactly pro-OCA.
Response
by: chfriend03 08/31/05 10:32 pm
Msg: 37594 of 37781
The openning of "de novo" offices stopped in the second quarter, because OCA could not file timely financials (and this resulted in a default on the credit line).
The term loan was in the amount of $25 million, and OCA paid down $2.1 million every quarter since Jan 2003 (when the loan was awarded).
If OCA resolves the liquidity crisis, then it will continue opening of "de novo" offices.
Of course, the (new or old) lenders need to see OCA's financials before a decision is made.
Before the financials, one can only study OCA's past cash flow.
by: YRdoc 08/31/05 08:47 pm
Msg: 37589 of 37781
After OCA lost the Hobson case, other docs began piling on, alleging similar overcharges. I know that in an Ohio case, a Motion for Summary Judgment was awarded to the doc. The court found that OCA had not only overcharged, but that they breached their Fiduciary Duty in doing so. I believe that case settled shortly after without going to trial, which would have basically to figure out and award damages. I believe other suits based on overcharges have also settled in the doc's favor short of trial.
By OCA's own admission, further De Novo expansion is now dead, due to the banks' unwillingness to pour any more money into the situation.
Other than blind faith and a lot of hope, I don't see much positive on the horizon. But I'll also admit my biases, which are not exactly pro-OCA.
Response
by: chfriend03 08/31/05 10:32 pm
Msg: 37594 of 37781
The openning of "de novo" offices stopped in the second quarter, because OCA could not file timely financials (and this resulted in a default on the credit line).
The term loan was in the amount of $25 million, and OCA paid down $2.1 million every quarter since Jan 2003 (when the loan was awarded).
If OCA resolves the liquidity crisis, then it will continue opening of "de novo" offices.
Of course, the (new or old) lenders need to see OCA's financials before a decision is made.
Before the financials, one can only study OCA's past cash flow.
posted by jajabin at 3:50 PM
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