© Reuters. Agilon Well being (AGL) shares dip on Citron brief report
By Sam Boughedda
Agilon Well being Inc (NYSE:) shares dipped Monday after Citron Analysis launched a brief report on the inventory.
Citron, which in January 2021, stated they might cease releasing brief reviews following the GameStop (NYSE:) and AMC Leisure (NYSE:) shopping for frenzy, not too long ago started publishing its brief analysis as soon as once more.
It has now taken intention at Agilon Well being, stating “the perfect days of Agilon are behind it” because the enterprise mannequin “unknowingly bought torpedoed” by the U.S. Supreme Courtroom with out Wall Avenue noticing.
“Agilon’s enterprise mannequin is to accomplice with major care physicians (PCP) and generate income shared from reducing prices and Medicare overpayments. Whereas the corporate makes use of many bombastic phrases like reinventing healthcare, Agilon is considered one of many corporations within the class of ‘physicians’ administration providers,” stated Citron.
As well as, Citron stated Agilon doesn’t personal clinics or practices and doesn’t have long-term contracts with payors.
“This unprofitable enterprise relies on preparations with doctor teams to separate extra profitability as soon as uploaded on the Agilon platform. Nearly all of these but unrealized income are to be generated by way of the rise of medical margin,” they added.
The agency additionally argues that Agilon “inflates its medical margin by together with a line merchandise titled ‘different medical bills.'”