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  "docSlug": "4e150a3ef496",
  "documentTitle": "NMC Health plc (NMC.LN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2019-12-17 00:00:00",
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  "notes": "This is a research note page detailing allegations of financial fraud and governance failures at NMC Health.",
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      "text": "NMC's margins appear “too good to be true” relative to UAE-focused publicly traded comps, Mediclinic International plc and Aster DM Healthcare Ltd.",
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      "text": "Each of these problems would be less likely to exist if NMC had sufficient governance. In our view, it falls well short... Executive compensation has nearly tripled in two years to $18.7 million a year.",
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      "text": "NMC's margins appear “too good to be true” relative to UAE-focused publicly traded comps... we believe that a significant part of the reason for this outperformance is NMC materially underreports its rejection rate for reimbursement.",
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      "text": "In our view, NMC also deliberately understated its debt by approximately $320 million as of FY 2018 by not reporting leases associated with its Aspen Healthcare acquisition as finance leases.",
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      "text": "NMC's reported cash balances show two red flags that indicate they could be materially overstated. The interest income NMC reports on its cash balances seems low, which has often been a good indicator of fraud.",
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      "text": "We believe that NMC has manipulated its balance sheet to understate debt... we found a reverse factoring facility arranged by an outfit called Channel Finance... we believe that they are not included in NMC's debt figures.",
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