{ "docId": "019dd923-622c-750b-8b9a-40e2965928db", "docSlug": "e5bffbaac707", "documentTitle": "TransMedics (TMDX)", "authorId": "58_Scorpion_Capital", "authorName": "Scorpion Capital", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2025-01-10 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 121, "pageCount": 342, "prevPage": 120, "nextPage": 122, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A format to present expert testimony regarding alleged illegal business practices.", "elementsJson": [ "paragraph", "quote_block" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-40e2965928db/121", "deckHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db#slide-121", "components": [ { "bbox": { "h": 0.03, "w": 0.86, "x": 0.07, "y": 0.48 }, "kind": "callout", "text": "Trinity Air allegedly engaging in abusive business practices similar to TransMedics", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1309c9d4-8176-4a44-a5d2-d721205c53c0", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "The CEO alleged practices almost identical to those indicated by ex-TransMedics employees: “they’ll fly planes in from like Arizona and to do stuff in New York because they can charge for all that...they’ll also pay the transplant program or pay somebody, whoever makes the decisions...they’ll give them a kickback to use their transplant logistics services even though they’re excessively more expensive...because whoever makes the decision is getting a piece of that.”", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-5373-719d-a97a-ad130ca4e660", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.38, "w": 0.86, "x": 0.07, "y": 0.52 }, "kind": "list", "text": "Q: “A former employee told me that even if they have a team that’s based in a metro area, they will often fly in a jet from the other end of the country, and the staff is like, “What are you doing? We’re already here.” I presume the reason is because then they get to bill all that?” A: “Yeah, and if you’ve heard of Trinity Air Medical, which is owned by Blade? Blade bought Trinity for $22 million and it does $110 million now. But that’s what they do. They don’t know it, but they’re under a federal investigation, and Blade’s only doing what it’s doing because of Trinity. But Trinity is under investigation. I don’t know if they even know it. But they’re giving kickbacks to different transplant programs in New York, like, hey, transplant administrator; I’ll kick you x amount of dollars, you just keep calling us, but that’s why the DOJ in New York has tuned in because they’re primarily based on New York. So, Blade’s getting in trouble...they’re about to get kicked in the teeth.” Q: “So, Trinity, they’re giving kickbacks to people to use their service even if a plane is not necessary?” A: “Yeah, they’ll fly planes in from like Arizona to do stuff in New York because they can charge for all that, but then they’ll also pay the transplant program or pay somebody, whoever makes the decisions, they’ll give them a kickback to use their transplant logistics services even though they’re excessively more expensive than other people, but they’ll keep calling and using Trinity because whoever makes the decision is getting a piece of that.” - CEO of a major OPO (Organ Procurement Organization), longtime industry executive", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e170c6e9-dcde-4721-9238-c5f899bedac0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.86, "x": 0.07, "y": 0.22 }, "kind": "paragraph", "text": "The CEO of a major organ procurement organization (OPO) alleged that Trinity Air Medical, owned by Blade Air Mobility (NASDAQ: BLDE) since 2021, is “under a federal investigation” for “giving kickbacks to different transplant programs...Blade’s getting into trouble...they’re about to get kicked in the teeth.” The CEO alleged practices almost identical to those indicated by ex-TransMedics employees: “they’ll fly planes in from like Arizona and to do stuff in New York because they can charge for all that...they’ll also pay the transplant program or pay somebody, whoever makes the decisions...they’ll give them a kickback to use their transplant logistics services even though they’re excessively more expensive...because whoever makes the decision is getting a piece of that.” We note that the color above re Trinity is merely allegation and that we have not verified its accuracy.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f33ec97c-9f63-49de-80ef-1bec058d69a5", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“they’re under a federal investigation” for “giving kickbacks to different transplant programs...Blade’s getting into trouble...they’re about to get kicked in the teeth.” — CEO of a major OPO (Organ Procurement Organization), longtime industry executive", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-5373-719d-a97a-b083848c4367", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.3, "x": 0.07, "y": 0.92 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ef5947dd-e7ef-47c5-888b-059aa54e9df3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "title", "text": "TransMedics aircraft-based business model is inherently high risk and prone to abuse and potential kickbacks, given similar alleged business practices at its competitors in the organ air transport industry.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c0922c98-b045-48c5-9c41-5a32642b45f8", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }