Trapped like the Rats they are, DYII: Dynacq Intl May Receive Less From Insurers, Barron's Says
2003-09-14 19:43 (New York)
Sept. 13 (Bloomberg) -- Dynacq International Inc., the owner
of a surgical hospital in Pasadena, Texas, may have a
``problematic future,'' Barron's reported, as insurers resist
paying its claims and Texas officials limit how much it can
charge.
Dynacq may also have a conflict of interest with surgeons
who own a 10 percent financial interest in the company's Vista
Medical Center in Pasadena, Barron's reported.
Vista, which's provides 90 percent of Dynacq's earnings,
specializes in surgeries paid for by workers' compensation
insurance, Barron's stated. Texas Mutual Insurance Co., the
state's no. 1 workers' comp insurer, has balked at paying the
rates Vista charges, Barron's said. And Texas officials plan new
rules on what hospitals can charge workers' comp insurers, the
weekly newspaper said.
James Baxter, a spokesman for Houston-based Dynacq, said he
remains upbeat about the company's prospects, according to
Barron's.
Dynacq shares fell 39 cents to $25.60 on Friday in Nasdaq
Stock Market trading. The stock has risen 78 percent this year.
Baxter and Texas Mutual Senior Vice President Terry Frakes
didn't immediately return phone calls from Bloomberg News.
(Barron's 9-15)
(For Barron's Web site on the Bloomberg, see {BARR <GO>}.
--Adam Steinhauer in the San Francisco newsroom (1) (415) 743-
3517 or asteinhauer@bloomberg.net, through the Princeton
newsroom. Editor: Wier.
Story illustration: For Dynacq International's filings with the
U.S. Securities and Exchange Commission, see
{DYII US <Equity> CF <GO>}.
Company news:
DYII US <Equity> CN
Dynacq Denies Report the Company Faces `Problematic Future'
2003-09-14 22:19 (New York)
Sept. 14 (Bloomberg) -- Dynacq International Inc., the owner
of a surgical hospital in Pasadena, Texas, said a report in
Barron's saying the company may have a ``problematic future''
doesn't provide an accurate picture.
The story, which said that Dynacq might face problems because
insurers resist paying its claims and Texas officials may try to
limit how much it can charge, is at a best a ``tremendous
exaggeration,'' spokesman James Baxter said.
``This is a normal part of our business,'' Baxter said.
``We're not a company in crisis.''
Barron's reported that Texas Mutual Insurance Co., the
state's no. 1 workers' compensation insurer, has balked at paying
the rates Vista Medical Center, which provides 90 percent of
Dynacq's earnings, charges. Barron's also reported that Texas
officials plan new rules on what hospitals can charge workers'
comp insurers, the weekly newspaper said.
The dispute with Texas Mutual is in litigation and Dynacq
will continue to pursue the payment amounts the company feels
entitled to, Baxter said. He said he wasn't aware of any proposals
in Texas about restricting what hospitals can charge in workers'
comp cases.
Barron's also reported that Dynacq may have a conflict of
interest with surgeons who own a 10 percent financial interest in
the Vista Medical Center in Pasadena. The 10 percent stake is not
large by industry standards and there's no conflict of interest,
Baxter said.
A call to Barron's news department wasn't immediately
returned Sunday evening.
Barron's is a publication of Dow Jones & Co. Dow Jones
competes with Bloomberg LP, the parent of Bloomberg News, in
providing financial news and information.
--Edvard Pettersson in Los Angeles (1) (323) 782-4234 or
epettersson@Bloomberg.net, with reporting by Adam Steinhauer in
San Francisco, through the San Francisco newsroom. Editor: Siler.
Story illustration: For Dynacq International's filings with the
U.S. Securities and Exchange Commission, see
{DYII US <Equity> CF <GO>}.
Company news:
DYII US <Equity> CN |
