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VRT

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$8.10 virtus health limited

Great news for women, bad for VRT & MVF, page-13

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bensterz

1,787 Posts.

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09/09/16

13:40

Post #: 19051254
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Originally posted by MarkieMills ↑

Yeah - that is approximately my understanding as well. I'm very interested in the referral process, as I suspect if I was an independent doctor or specialist, I would recommend a lower cost or bulk bill service for the first few shots, and then if that fails I would refer up the chain. It might well be that competitors will need to win this lower margin business to win the higher margin business later - but then there is the perverse incentive, that the business might be better off with the initial basic treatments failing to up sell to higher margin. I suspect the more experience doctors have with referring, the more they might apply some basic game theory on behalf of their patients. So this might impact Virtus and MVF significantly over time.

Something is pressuring the Aus IVF cycle numbers at Virtus, H2 overall down over ten percent on half 1. (MVF was bad too, but nothing so obvious to my mind). That looks quite terrible to me. Hence I am willing to ride a few bumps with my short position. I think the salad days are ending, while the SP is flying, and the forward indicator is the number of cycles in Aus.

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I'm not too familiar with the referral service myself in terms of the IVF business.

I do know that kick-backs, referral fees etc. do happen when it comes to GPs making referrals of patients to surgeons, pathology businesses etc.

VRT Price at posting: $7.98 Sentiment: Hold Disclosure: Held
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