Comments on: Healthcare IT from the Investor’s Chair 11/17/09 http://histalk2.com/2009/11/16/healthcare-it-from-the-investors-chair-111709/ Healthcare IT News and Opinion Tue, 16 Mar 2010 19:56:29 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: HIS Junkie http://histalk2.com/2009/11/16/healthcare-it-from-the-investors-chair-111709/comment-page-1/#comment-6715 HIS Junkie Thu, 19 Nov 2009 01:47:50 +0000 http://histalk2.com/2009/11/16/healthcare-it-from-the-investors-chair-111709/#comment-6715 If you own a share of EPIC it is worth NOTHING until you sell it. And usually a private company has very tight restrictions on if you can sell it at all and who you can sell it to. And that's the really big problem for EPIC in future years. If Judy holds to the premise 'this company is not for sale- EVER!' then if you are a long term employee what are your shares worth?? Nothing unless the company buys them back from you...and since they are the only buyer they set the price. So, what happens in a private company is you award shares and use them as a proxy to divide up profits. Just like Meditech did this year. It paid $67 mill in bonuses to employee shareholders as a 'dividend' most of which went to the biggest shareholders. The net is, unlike silicon valley comapnies, if you are a small minority stockholder in EPIC you ain't going to get rich till the comapny gets sold. Don't hold your breath... If you own a share of EPIC it is worth NOTHING until you sell it. And usually a private company has very tight restrictions on if you can sell it at all and who you can sell it to.

And that’s the really big problem for EPIC in future years. If Judy holds to the premise ‘this company is not for sale- EVER!’ then if you are a long term employee what are your shares worth?? Nothing unless the company buys them back from you…and since they are the only buyer they set the price.

So, what happens in a private company is you award shares and use them as a proxy to divide up profits. Just like Meditech did this year. It paid $67 mill in bonuses to employee shareholders as a ‘dividend’ most of which went to the biggest shareholders.

The net is, unlike silicon valley comapnies, if you are a small minority stockholder in EPIC you ain’t going to get rich till the comapny gets sold. Don’t hold your breath…

]]> By: Fourth Hansen Brother http://histalk2.com/2009/11/16/healthcare-it-from-the-investors-chair-111709/comment-page-1/#comment-6688 Fourth Hansen Brother Wed, 18 Nov 2009 03:45:27 +0000 http://histalk2.com/2009/11/16/healthcare-it-from-the-investors-chair-111709/#comment-6688 So if the Epic shareholders sold, where could they put their money so that it earns the same amount as it does sitting in Epic? I suspect Judy knows full well what an IPO offers, she's probably not very impressed. So if the Epic shareholders sold, where could they put their money so that it earns the same amount as it does sitting in Epic? I suspect Judy knows full well what an IPO offers, she’s probably not very impressed.

]]> By: HIS Junkie http://histalk2.com/2009/11/16/healthcare-it-from-the-investors-chair-111709/comment-page-1/#comment-6684 HIS Junkie Tue, 17 Nov 2009 16:32:00 +0000 http://histalk2.com/2009/11/16/healthcare-it-from-the-investors-chair-111709/#comment-6684 What a name! I went thru the IPO process some years ago and all you heard from the Wall Street wags is the question 'is transaction must be accretive?'..over and over... So you name your company 'Accretive Systems' and the wags now hear you say the magic words over and over. Neat trick! But on the other side of the coin...if I am am looking to buy your system I get real nervous because by your moniker you've already told me you are NOT in this for the long run. Oh, by the way, I am in the process of a new startup named Meaingful USe Systems. Hope that works as well as Accretive What a name!
I went thru the IPO process some years ago and all you heard from the Wall Street wags is the question ‘is transaction must be accretive?’..over and over…

So you name your company ‘Accretive Systems’ and the wags now hear you say the magic words over and over. Neat trick!

But on the other side of the coin…if I am am looking to buy your system I get real nervous because by your moniker you’ve already told me you are NOT in this for the long run.

Oh, by the way, I am in the process of a new startup named Meaingful USe Systems. Hope that works as well as Accretive

]]> By: matthew holt http://histalk2.com/2009/11/16/healthcare-it-from-the-investors-chair-111709/comment-page-1/#comment-6668 matthew holt Tue, 17 Nov 2009 00:57:22 +0000 http://histalk2.com/2009/11/16/healthcare-it-from-the-investors-chair-111709/#comment-6668 Ben, as you don't have to spend time with Ms Faulkner on the road show, how about assessing Accretive Health's "about" portion of their web site and see if you have ever seen anything less revealing about who they are, who the investors are, what they do, or why they do it!--Matthew Ben, as you don’t have to spend time with Ms Faulkner on the road show, how about assessing Accretive Health’s “about” portion of their web site and see if you have ever seen anything less revealing about who they are, who the investors are, what they do, or why they do it!–Matthew

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