OCA (8)
Question
by: YRdoc 08/31/05 01:37 pm
Msg: 37550 of 37781
Yahoo has statistics on OCA, though I didn't notice a date - presumably it's September, 2004. Revenue was $401 million. I believe the corporate expense was supposed to run about 6 - 8% of income revenue in an office. OCA has only a very small amount of income from non-patient-revenue sources. Six percent of $401 million is $24 million. That's treated as a "center expense" which means the affiliate bears 60% or 50% or whatever his percentage is. But if I'm anwhere close, that's about $10 million of lost revenue to OCA. Those same statistics show a $14 million profit. And to me, that's a major dent in any profit they may manage to earn BEFORE the accounting restatement, which will almost certainly create a further decrease in profitability!
According to my information, your $7 million estimate for corporate expenses is 'way low!
Response
by: chfriend03 08/31/05 01:47 pm
Msg: 37551 of 37784
I got the figure of $4+ million from OCA's documents, and I believe it to be accurate. Besides, in making the decision to waive this expense (instead of just reducing it by a safety margin), OCA certainly believe the expense was not essential to its survival.
$24 million to run a corporate office is way out of line. I bet not every employee (including the secretaries) at corporate gets $100,000+ a year? What is the average wage there?
by: YRdoc 08/31/05 01:37 pm
Msg: 37550 of 37781
Yahoo has statistics on OCA, though I didn't notice a date - presumably it's September, 2004. Revenue was $401 million. I believe the corporate expense was supposed to run about 6 - 8% of income revenue in an office. OCA has only a very small amount of income from non-patient-revenue sources. Six percent of $401 million is $24 million. That's treated as a "center expense" which means the affiliate bears 60% or 50% or whatever his percentage is. But if I'm anwhere close, that's about $10 million of lost revenue to OCA. Those same statistics show a $14 million profit. And to me, that's a major dent in any profit they may manage to earn BEFORE the accounting restatement, which will almost certainly create a further decrease in profitability!
According to my information, your $7 million estimate for corporate expenses is 'way low!
Response
by: chfriend03 08/31/05 01:47 pm
Msg: 37551 of 37784
I got the figure of $4+ million from OCA's documents, and I believe it to be accurate. Besides, in making the decision to waive this expense (instead of just reducing it by a safety margin), OCA certainly believe the expense was not essential to its survival.
$24 million to run a corporate office is way out of line. I bet not every employee (including the secretaries) at corporate gets $100,000+ a year? What is the average wage there?
posted by jajabin at 3:34 PM
0 Comments:
Post a Comment
<< Home