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medpundit |
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Thursday, July 11, 2002“I don't think counting the co-pay as revenue matters all that much. Their competitor also does it that way according to some analysis I read. Also if they inadvertently tell the pharmacist to collect $5.00 instead of $10, they are liable to the pharmacy for the additional $5. The accounting had no effect on net income since they offset it with and equal expense except for the few cases where they made the mistake indicated above. Then the expense would be higher. Since the bottom line is the important thing and not revenues per say, and this had no effect on the bottom line, (except as noted above), then why should anyone consider it misleading? I will admit that for a while everyone was focusing on revenues as if that were all that mattered, but that silliness had no basis in reality anyway. The important thing is net income. To compare it to Enron is just ridiculous, not to say unfair.” Well, I never compared it to Enron, but I still suspect they counted the co-pay to make their revenues seem higher. posted by Sydney on 7/11/2002 06:19:00 AM 0 comments 0 Comments: |
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