DirkKyut I have been following this for a while. What I can't...

DirkKyut I have been following this for a while. What I can't work out is where do the synergies come from in acquiring practices?

As I see it each practice has some practitioners who obviously sell their hours. Once they are full that's it.

I am assuming the more practitioners you have the more contribution to corporate overhead. In the reverse the more the corporate overhead the more practitioners required to contribute.

I can't see any particular benefit to the practices other than the obvious payment for the practice owner. I guess a lot of these practices don't have a succession plan and the offering here is a way out particularly for older practice owners. I am also assuming the biggest risk is staff retention ( patients by and large are loyal to the practitioner not the practice ) and obviously productivity is the key.

In summary my take is it should be pretty easy to work out what's happening here. Dollars in based on productivity, fixed overheads out and hopefully some left for shareholders. If things get tight slash the corporate overhead.

I also wonder how much expansion by acquisition is left?

Anything else?