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  "documentTitle": "Premier, Inc. (PINC)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-09-25 00:00:00",
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  "notes": "Uses a bridge-like logic to compare current benefits vs. opportunity cost.",
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      "text": "The incentives associated with Class B share ownership are not nearly sufficient to keep GNYHA tied to Premier's GPO at a 30% shareback rate.",
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      "text": "While GNYHA receives $7M in various tax-related distributions from Premier on an annual basis through its ownership of Class B shares, it stands to increase its administrative fee revenue by close to $40M per year by moving to a market-rate shareback of 66%.",
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      "text": "Hypothetical Gain from Shareback Increase: $37.8M",
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      "text": "When questioned about renewal risk in the past, management cited its tax distributions and TRA as sources of member owner stickiness. As discussed, each member owner receives a “tax distribution” covering its pro-rata share of Premier LP tax based on its Class B ownership...",
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      "text": "While GNYHA receives $7M in various tax-related distributions from Premier on an annual basis through its ownership of Class B shares, it stands to increase its administrative fee revenue by close to $40M per year by moving to a market-rate shareback of 66%.",
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      "text": "1. LP Distributions from cash flow statement... 2. GNYHA FY19 Class B ownership... 3. FY19 Net Admin Fees...",
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      "text": "Annual Per-Share Benefits To Class B Share Owners, Spruce Point Estimate",
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      "text": "Class B \"Dividends\" Not Sufficient To Encourage GNYHA To Remain With Premier",
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