Joe Moscato
Right now, we are in discussions for 60% of the business. We're in the final
throes of terms, which will be about five million in cash and about five
million in Generex stock for the pool shares.
The hospitals are designated by the Centers for Medicare and Medicaid as
critical access hospitals, which provide significant financial and operational
benefits, including cost based reimbursement from Medicare. As of January
1, 2004, CAH are available for allowable cost, plus one per cent
reimbursement.
In some states CAHs may also receive cost-based reimbursement for
Medicare and Medicaid, flexible staffing and services to the extent permitted
under the state licensure laws; capital improvement costs, including
unallowable costs for determining Medicare reimbursement; access to
flexible program, educational resources, technical assistance, and other
grants.
The CAH hospitals provide networks of physicians, and healthcare programs,
as well as patient populations with significant medical needs. Generex and
our subsidiary companies plan to offer our wide range of drugs, surgical
products, and biologics, medical devices, and service offerings to not only
grow the revenues at Generex, but also to improve the health and well-being
of rural communities in the network.
These hospitals are well-positioned to take advantage of the pending
allocation of VA services to the private sector, as well as telemedicine
initiatives that are reimbursable in these communities. We will provide
additional information as this acquisition advances through the due diligence
process.
This is a very exciting potential acquisition. We're hoping that within the
coming weeks we'll be able to announce definitive terms as well as the
acquisitional structure.
It's an important piece of what we're doing. We believe not only will we be
able to enhance the value of those hospitals, as well as the management
company through our expertise, but also offer a lot more services through our
own product lines, as well as our MSO network.
It's very exciting. It's one to watch out for. We're hoping within the coming
weeks, as I said, we'll be able to fully announce the transaction and get
everybody excited about it. Thank you for that
Right now, we are in discussions for 60% of the business. We're in the final
throes of terms, which will be about five million in cash and about five
million in Generex stock for the pool shares.
The hospitals are designated by the Centers for Medicare and Medicaid as
critical access hospitals, which provide significant financial and operational
benefits, including cost based reimbursement from Medicare. As of January
1, 2004, CAH are available for allowable cost, plus one per cent
reimbursement.
In some states CAHs may also receive cost-based reimbursement for
Medicare and Medicaid, flexible staffing and services to the extent permitted
under the state licensure laws; capital improvement costs, including
unallowable costs for determining Medicare reimbursement; access to
flexible program, educational resources, technical assistance, and other
grants.
The CAH hospitals provide networks of physicians, and healthcare programs,
as well as patient populations with significant medical needs. Generex and
our subsidiary companies plan to offer our wide range of drugs, surgical
products, and biologics, medical devices, and service offerings to not only
grow the revenues at Generex, but also to improve the health and well-being
of rural communities in the network.
These hospitals are well-positioned to take advantage of the pending
allocation of VA services to the private sector, as well as telemedicine
initiatives that are reimbursable in these communities. We will provide
additional information as this acquisition advances through the due diligence
process.
This is a very exciting potential acquisition. We're hoping that within the
coming weeks we'll be able to announce definitive terms as well as the
acquisitional structure.
It's an important piece of what we're doing. We believe not only will we be
able to enhance the value of those hospitals, as well as the management
company through our expertise, but also offer a lot more services through our
own product lines, as well as our MSO network.
It's very exciting. It's one to watch out for. We're hoping within the coming
weeks, as I said, we'll be able to fully announce the transaction and get
everybody excited about it. Thank you for that
