The new $CLOV research released by Hindenburg Research is severely flawed. I honestly do not think they understand how the healthcare payment system works.

1. The DOJ investigation is doomed from the start. Kickbacks are hard to prove and can be structured in many legal forms

2. Operating at a loss is the norm for disruptive companies and the fact they plan to be profitable by 2023 is impressive.

3. Criticizing Clover for sales tactics that mislead the elderly is just laughable. Having a company you own help patients with insurance choices is the least deceptive thing insurance companies do. You may as well dissolve the AARP (please do) for screwing seniors for decades

4. Clover was fined by CMS for misleading tactics, but CMS fines companies CONSTANTLY. CVS/Caremark/Aetna is caught defrauding the government every year but they just get a slap on the wrist.

5. The assertion that Clover mislead patients about services shows just how little Hindenburg understands our healthcare payment system. Insurance companies promise coverage to patients in regards to tier based copays and networks that they CONSTANTLY change

6. Seek Medicare, as I mentioned before, is no different than Geico giving you quotes from multiple insurance companies. This is nothing compared to CVS/Caremark/Aetna sharing patient data to steer them toward conglomerate owned services.

7. Going after Clover for marketing their software as a driver of sales because they use a marketing and sales team is just lazy.

8. Removing your name and ownership of companies for compliance reasons is incredibly common. So your company uses a company you know and trust? Big deal. No one will care about this when they let conglomerates go with a pinky promise that they won't share data

9. You are allowed to give out gifts to offices. A certain amount is allowed per year.

10. They are seriously attacking insurance for upcoding like it is something new. They all do it, intentionally or unintentionally. It is easily passed off on a mistake when they are audited. This is not groundbreaking information

11. If the software is easy for people to use, it is improving patient care. And guess what, ALL HEALTHCARE SOFTWARE IS DESIGNED FOR CODING PURPOSES

12. You want it to be difficult to do things like remove diagnoses in your software. It is intentional to prevent you from making a mistake. All software has tedious crap to make sure we don't unintentionally delete something important

13. Paying physicians more is always going to delight them. Using a criminally underpaying system like medicare as a baseline just shows how little Hindenburg understands

14. Getting physicians to adopt new software is HARD. They seriously retire or quit over stuff like that. Adoption rate will be slow, so the fact that those who have adopted are using the software 98% of the time is a big deal

15. If you were to call 100 doctors offices, 99 would complain about the software. Providers HATE software. Insurance companies require more and more paperwork every year and the software that helps with that is always criticized.

16. Hindenburg is calling member growth lump and sporadic while failing to understand that signing up for Medicare only happens at certain times in the year. There is a reason there is a spike every year and slow down.

17. The rest is just a personal attack on Garipalli

This was by far the laziest and ignorant short report I have ever read. Hindenburg research needs to understand the industry it is talking about before publishing this kind of crap. This was so bad, it encouraged me to grab $CLOV calls
@chamath

#CLOV

I'm a pharmacist, not a financial advisor. Just in case the SEC get's their panties in a wad