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  "documentTitle": "Premier, Inc. (PINC)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2019-09-25 00:00:00",
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      "kind": "callout",
      "text": "With GNYHA responsible for 10% of total Premier revenue, Spruce Point believes that GNYHA has significant negotiating leverage against Premier... As a group, the wave of hospitals eligible to opt-out in Oct 2020... could wield the same leverage.",
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      "text": "With GNYHA responsible for 10% of total Premier revenue, Spruce Point believes that GNYHA has significant negotiating leverage against Premier.",
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      "text": "Implied Shareback %: 60%",
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      "text": "To the extent that member owner hospitals intend to hold their PINC shares, Class B shares offer superior total returns via the tax distribution and TRA... Spruce Point estimates that... transitioning all owner members to a shareback rate of 60% would be nearly as destructive as would transitioning them to the non-owner member rate of 66%.",
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      "text": "1. FY19 Net Admin Fees from GNYHA estimated from FY18 Net Admin Fees from GNYHA, projected forward at total Net Admin Fee growth rate.",
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      "text": "Minimum Premier Shareback To GNYHA For Parity With Market Rate (FY19): Net Admin Fees from GNYHA $73.6M; Gross Admin Fees from GNYHA (@30% Shareback) 105.1M; PINC Shareback (@30%) $31.5M; Plus: Net Gain To GNYHA From Switching GPO (@66% Shareback) 30.8M; Minimum Premier Shareback For Parity With Market-Rate GPO $62.3M; Implied Shareback % 60%",
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      "text": "Net Gain To GNYHA From Switching To Another GPO, Spruce Point Estimate (FY19): Hypothetical Gain from Shareback Increase (30% to 66%), Annual $37.8M; Lost Annual Class B Share Benefits, Total ($7.0M); Net Gain To GNYHA From Switching GPO (@66% Shareback) $30.8M",
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      "text": "Class B \"Dividends\" Make Little Difference To Hospitals' GPO Decision",
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