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Biotech / Medical : Medical Industries Of America, MIOA

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To: Mr. Miller who wrote (217)7/9/1997 3:31:00 PM
From: Mr. Miller   of 570
 
I guess we are all anxiously awaiting quarterly earnings. Last quarter it looks like there was an increase in buying(either to cover shorts or to look for the miracle) at the beginning of the april in anticipation of the report. There has been little movement thus far and we do not know when the results will be made known. This is the excitement of trading. The anticipation. Ooooooooooohhhhhhhhhh!
Notice also that the stock price dipped after news came out that the report would be delayed to the end of the month. Notice also that the price went up gradually till the announcement of earnings and then the woeful fall. I do not believe this one will take off as late last quarter thread remarks would lead you to believe, but it could be a roller coaster ride up to my aforementioned range and a pull back in the same day. Right now this is all the stock has in terms of news that will move the stock. Obviously, the other stuff is important, but has done little to move this stock. I am buying now instead of waiting until next week...

I read interesting article in AMA(american medical association) news. If anyone is interested I can give you specifics later. The article spoke about the evolution of "factories" and the proposed legislation in washington that will influence medicine. First the legislation. The important point is that procedures performed in the hospital would get less compensation from the government(medicare) and procedures done in the doctor's office(presumed outside the medical center(or hospital) would get the same. This would tend to force procedures out of the hospital and into outpatient settings. Many holes here I know but I am investigating to find out more. However, this can benefit a company like MIOA in that the hospitals would contract out more than just overflow to MIOA, which would obviously increase revenue. In addition, independent practices like that which MIOA owns can benefit from not being associated with the hospitals. Procedures they do could be compensated as usual. This looks like a big plus for private practice physicians. More importantly is the impact of increased business for diagnostic procedures. By doing the procedure(Cardiac cath) outside the hospital, you prevent having a potential overnight stay or use of space that could be used for patients needing recovery. Reducing the space for the procedures will eliminate those jobs in the hospital(increasing the bottom line for the HMO that most likely owns the hospital). Please look into this yourself if you wish-these are my interpretations only of a topic I am vaguely familiar with.
The issue of the factories is interesting. It is believed that market pressures will bring in a new age of administering medical care in various specialties. Basically the factory is a specialized area of medicine designed to provide care for that particular specialty in every way. For example, a structure could be built to handle all forms of care related to the heart. Staying simple, the structure could perform a cardiac catheterization of someone's heart, determine the blockages if any, and set up CABG or angioplasty or other treatments. This structure would be responsible for handling all care involved along the way. Everything from changing the bedpans to counseling patients and families to follow-up care after leaving the structure. SOUND FAMILIAR to anyone? I must retract my statements about MCTH I made before. MCTH is in the business of building such a kind of factory. They make heart hospitals which are "solely" concerned with the care of the heart. They are indeed ahead of the game. If they are successful managers, they will do very well in that arena.
The legislation and factory building will both help MIOA. They could be a key player in a group to provide cardiac catheterization in a factory. In addition, they could strike a deal with a major HMO to do their diagnostic cardiac catheterizations. This would save the HMO millions and transfer those to MIOA. Perhaps this is what the delay in news reports is-we are working on a blockbuster deal that will put the vitacare deal to shame. Although just about any deal will put that to shame. But hey I am not knocking that deal-it is better than nothing and it is growth. I hope the first center will be operational by the end of august.

Keep watch of the newswire. Who the heck knows when the report will be dropped.

Miller
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