The latest news from Bloomberg put a damper on my plans to play point guard for the Warriors.
As loyal readers know, in a previous post on One Call I alluded to the company’s survivability having the same chance as me playing point guard for that esteemed NBA franchise.
Alas my hoops career appears stillborn.
We are now 10 days past the date One Call failed to make a $15 million debt payment, and it appears little progress is being made. Some have pinned their hopes on the company‘s future on One Call’s debt holders all getting together, joining hands and singing Kumbaya. Somehow I don’t think that’s likely.
Why would the most senior debt holders agree to take a haircut to help more Junior debt holders? The senior debt holders accepted a lower interest rate in return for their seniority in the event of a default. I doubt the senior debt holders are going to give up anything to help junior debt holders, who got higher interest payments in return for less security. However it’s possible – if some of the senior debt holders also own some of the more junior debt, they could work something out – if all the other debt holders agree.
IF they somehow manage to convince ALL debt holders to do this it’s possible a restructuring could occur. Notice the emphasis on ALL.
There’s also been a lot of talk about some sort of a debt-for-equity swap.
Again, I just don’t see this happening. The debt holders will end up owning the company if it enters bankruptcy, so (Sorry to repeat myself here) why would the senior debt holders agree to give up some of their ownership – – when they probably don’t have – to just to be nice to the junior debt holders? All debt holders would have to agree and that’s pretty unlikely.
Far more likely is the worst case scenario; the company runs out of money, defaults, and ends up going into bankruptcy.
I just don’t see how the company makes it given its huge debt load and cash flow problems, coupled with client losses and I would argue, feckless and far-less-than-forthcoming management.
I’ve heard from several colleagues that One Call management has repeatedly characterized my efforts to shed light on the problems at OCCM in pretty insulting terms. Those still undecided on who is right and who has been telling tales may want to reflect back on management’s multiple “all-is sunshine-and-puppies” pronouncements given today’s Bloomberg piece.
For the mid-level managers and other workers who have stock or stock options, this slow-motion train wreck must be beyond painful. While there are certainly some who contributed to this debacle, I’m sure there are many talented and hard-working folks in Jacksonville who deserve another chance.
Why do you have to be so flippant and rude about this situation? Even if true, I don’t think making light of it with your basketball dreams is really helpful. Like you said, there are many great people that work for this company, and just because the company files bankruptcy and ownership shifts, doesn’t mean the whole company goes in the tank. I actually know from experience, that they have always looked out for their employees even if the face of layoffs. I believe in the work they do, and it’s a shame that these debt issues get in the way of focusing on providing good service for payors and patients alike.
Hello Anon
Thanks for the note. Perhaps you haven’t read my other posts on this company.
I’ve been supportive of the workers there since day one. In fact I called out management for their punitive non-competes and legal assault on a single mom who tried to switch employees.
Not sure how they’ve “looked after” their employees however most of the OCCM folks I’ve spoken with have a different perspective than you do.
Hope it works out for the worker folks.
They absolutely DO NOT look after their employees!!!
I agree, I am a Nurse Case Manager and many of our accounts use One Call for many of their services. In the past two years I have notice a major improvement in their abilities and quality of service. When compared to the many other ‘players’ in this field they are on par or superior. Shame that their fatuous management has led them down this road to ruin. Many a good front line employee will end up paying the ultimate price when OCCM folds up. Of course the upper management will just move on to other jobs as they always have a friend somewhere.
Would you contract with OneCall as a provider at this point?
Hi Joe,
If matters do deteriorate further, is there a risk that OneCall might not be able to pay its medical providers for services already rendered? If so, can payers, TPAs, employers and others who have already paid OneCall for such service be liable to pay providers that are unpaid – in essence paying twice? This could create quite a situation.
Rudy – Good question.
Not sure where “anonymous” is getting his/her information regarding OCM “always looking out for their employees even in the face of layoffs” as I have hired former OCM employees who worked for them for many years who were abruptly laid off by OCM when they closed their PA office. Those employees were told OCM was outsourcing the work overseas. Their loss and my gain, but this is not what any reasonable person would consider “looking out” for its employees. .
Common Anom not sure your perspective but you seem close to them. I respect that but please know we all don’t feel this way. I for one would be happy to see them go. They like a few other of these third party networks have done nothing but get in the way of a provider and their injured worker here in AZ. They are taking more than 50% of the money and taking it out of the state. Don’t even get me started. Joe is being quite respectful. Me on the other hand not so much. One Call has been sued for their practices in CA and deserve to be elsewhere. I am glad they are good to their employees but I can tell you they don’t care about their providers and more importantly about the injured worker. I hate to be harsh but 10 years of them leaching of our hard work has been enough. They deserve to go belly up. But I do hope all their good people make out ok. They don’t deserve this and most don’t even understand how they operate. The TPA’s and payers will find other better options like establishing networks that are state based that likely would save them much more than One Call was.
I agree with Anon and yes I have read all of your posts. It is not about the fact or truth of the message, but the delivery. One Call is not the sum of their upper leadership whom has made wrong decisions along the way to come to the current situation. It is sad and upsetting, but addressing the situation in such a flippant tone can be seen as disrespectful to the many hard working people that work at One Call. People that didn’t make those bad decisions or have the power to fix what is. People who care about their co-workers and about the injured patients they are trying to serve.
Hello Anon2.
Thanks for sharing your opinion.
I disagree. This isn’t disrespectful at all, it is merely a way of communicating my sense for the future of the company as currently constructed. One often has to use metaphor and analogy in communicating as it helps readers really grasp and understand the core issue in a way that is deeper and more understandable.