$240m & counting: cost of doctor poison pill

VEI continues to trade at a significant valuation discount to its medical specialty peers, some 9 times earnings. Further, approximately $10m ebitda (and counting) was redirected to higher doctor partner pay over recent years.

Route cause is poison pill threat of departures.

The likes of Virtus Health and Monash IVF have been at pains to point out individual doctor bargaining power is mitigated by sheer doctor contracting numbers and alternative focus on freelance visitation interaction model. This has served their valuation well.

VEI remains silent on milestone achievements (if any) regarding strategic execution - no announcements made since $27m capital raising in Jan 2013. No dividend announcements either.

Ultimate cost borne by shareholders funding this business.