Systemic problems with mortgage loan operations -- originations and modifications -- are flows which are capitalized into a long-dated assets or stocks. Correcting bad origination practices, or changing the flows, does not change the prior stocks created by the flows. There were systemic...

The purpose of this paper is to review a late 2014 non-consolidation decision of The Bancorp (NASDAQ:TBBK), a Philadelphia area bank with a diversified loan portfolio, but also known for being one of largest issuers of reloadable prepaid debit and gift cards in the country.Based on detail...

The purpose of this paper is to make transparent what Medco does not. Transparency in a company's business model is good for economic welfare (i.e., competition) but not necessarily good for a company's stock performance. This paper is written from the perspective of economic welfare, not from...

A statistical comparison of the business models of Express Scripts and Medco is presented. While both have similar rebates retention rates, Medco extracts significantly higher rebates per prescription. The source of the difference is due to different approaches to formulary compliance, rather...

When the tax-financed share of an industry's revenue approaches 50%, a company will often find that its financial statements are held to a higher standard. That higher standard is often labeled “transparency”. With the recent extension of Medicare to cover outpatient prescriptions of the...

The business model of large Independent pharmacy benefits managers (PBMs) are in stark contrast to the rest of the healthcare cost containment industry in that their revenue model features opaque transactional margins from captive suppliers subsidizing transparent management fees. Updating our...

In an effort to make its business model more transparent, Medco Health Solutions, the second largest independent pharmacy benefit manager, first disclosed in 3Q2004 that its rebate retention rate was 40.5%.In the nine months since disclosure, Medco has allowed its rebate retention rate to drop...

Based on a theory of market share rebates as exclusionary, rather than share-shifting, devices, we have estimated that Medco has a rebate negotiation competitive advantage over smaller entities equal to 4.8% of all ingredient costs. That figure is an estimate of the cost to clients of switching...