{ "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": 74, "pageCount": 342, "prevPage": 73, "nextPage": 75, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A format to build a case for fraudulent billing practices.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-40e2965928db/74", "deckHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db#slide-74", "components": [ { "bbox": null, "kind": "callout", "text": "The OCS Specialist indicated the practice of flying in nonlocal teams is now the norm, not an outlier, suggesting fraudulent air billing on a vast scale; and that it began only after TransMedics purchased its own jets, providing further evidence that the real purpose of the NOP’s air transport operation is to inflate charges to transplant centers, not to drive efficiency.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-5373-719d-a977-4c9d73d8b59c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.86, "x": 0.07, "y": 0.35 }, "kind": "paragraph", "text": "Regularly flying in nonlocal teams; allegedly began after TransMedics purchased the aircraft", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "48e1d4f2-87cb-475a-b81a-64f06d42381f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.86, "x": 0.07, "y": 0.42 }, "kind": "quote", "text": "Q: \"Obviously, it's cheaper to send the local team. What percentage of local cases would they fly in somebody for?\"\nA: \"It was variable, but I would say the last couple of months prior to me leaving, it was pretty consistent. If the organ was going outside, like let's say it was Seattle to California, Seattle to San Diego, they would fly up a San Diego team or a San Ramon team even if the case was a brain death donation...It used to be how they that if it was a brain death donor, they would fly in the team closest to the recipient center because they were quite certain that the organ was viable and it would be atypical for that organ to be turned down once the team showed up. They would fly the team from closest to the recipient center because they would have to go back there anyway. If it was a DCD, where the donor has to to still expire within a certain amount of time for the organ to be viable, they would send the local team because if the donor didn't expire, then you haven't invested a significant amount of money to get people from out of state here. So you only have the front-end cost to just be basically the transport from the local hub. That's how it used to be. But since they purchased their planes, they basically were like, we're not going by this model anymore.\"\nQ: \"This business of flying in people from elsewhere started after they got the planes. They were trying to use the planes?\"\nA: \"Yes, that's what it seemed to match up with. That seems to be when it started happening.\"\nQ: \"And before that, obviously, they would not have sent a charter service from across the country; it could have been done locally. They only did that once they had planes they could bill?\"\nA: \"Unless there just wasn't a local team available because they were on cases.\" - Former OCS Specialist who left recently", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "46bd6983-8850-4bc8-97a8-aee7cd739dae", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“the last couple of months prior to me leaving, it was pretty consistent...since they purchased the planes, they basically were like, we’re not going to do this model anymore [of using the closest team to the donor]”; “it seemed to match up with” when TransMedics first bought the aircraft; “that seems to be when it started happening.” — Former OCS Specialist", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-5373-719d-a977-51870943fd40", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.3, "x": 0.07, "y": 0.95 }, "kind": "source-note", "text": "Source: Scorpion Capital consultation calls with experts", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9325de3f-40a2-4c72-a053-cbf521e29a57", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "title", "text": "The OCS Specialist indicated the practice of flying in nonlocal teams is now the norm, not an outlier, suggesting fraudulent air billing on a vast scale; and that it began only after TransMedics purchased its own jets, providing further evidence that the real purpose of the NOP’s air transport operation is to inflate charges to transplant centers, not to drive efficiency.", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ed9a12e1-91e3-4af5-98e2-24529b3905cc", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "f1db08c5-527f-4744-8a6b-8ab7feb4a92c", "evidence": "The slide explicitly frames the testimony as evidence of fraudulent air billing.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }