{ "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": 89, "pageCount": 342, "prevPage": 88, "nextPage": 90, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 4, "notes": "The slide uses a highlight-heavy block quote to emphasize the alleged extortion and fraudulent billing.", "elementsJson": [ "paragraph", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9a-40e2965928db/89", "deckHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db", "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-40e2965928db#slide-89", "components": [ { "bbox": { "h": 0.03, "w": 0.86, "x": 0.07, "y": 0.41 }, "kind": "callout", "text": "Allegedly held a center hostage after sending $3-400K in charges that were not agreed to", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "96908686-8c03-4165-9dff-463ca3aab381", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "I just found it very disturbing that they come in with these threats...holding them hostage.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-5373-719d-a978-5f7cca658787", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.86, "x": 0.07, "y": 0.45 }, "kind": "paragraph", "text": "“Most recently, I got a message from [redacted]. [Redacted] was a heavy user of TransMedics liver machine. They went into a contract, and then TransMedics started operating in this really inefficient way that we discussed earlier where they sometimes will commit to going to a donor maybe in Reno, but they show up with three planes, and so then [redacted] believed that they just ordered a $100,000 machine and service, but then a month later, they get $300,000, $400,000 worth of invoices because TransMedics is passing along all of these aircraft fees and the ground transportation fees to them. This colleague was explaining to me the situation where when they went into contract, none of this was agreed on. And so, internally, they were having trouble getting this routed appropriately through procurement at the hospital and needing to renegotiate or get it into the agreement. And so, it had been several months where they had not yet been able to reimburse TransMedics for the flight charges that they were trying to pass through to them. Well, Waleed reaches out to this transplant center, which is the largest transplant center in [redacted], and essentially gives them 48 hours to pay all of these flight charges that they never agreed to pay. TransMedics went on and incurred the charges on their own and then tried to pass along the charges to [redacted]. And essentially tells them that they are going to shut off access to the machine to them. They never even agreed to these expenses...I just found it very disturbing that they come in with these threats that their patients will no longer have access to these lifesaving grafts because they now want to be reimbursed for these flights retrospectively that they acknowledged was never in the agreement, but the incurred the charges and they want them to be paid anyway. And holding them hostage.” – Executive at a leading West Coast OPO, longtime industry veteran", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a91e8210-87b8-4775-bc04-7c9d55e86e81", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Most recently, I got a message from [redacted]. [Redacted] was a heavy user of TransMedics liver machine. They went into a contract, and then TransMedics started operating in this really inefficient way that we discussed earlier where they sometimes will commit to going to a donor maybe in Reno, but they show up with three planes, and so then [redacted] believed that they just ordered a $100,000 machine and service, but then a month later, they get $300,000, $400,000 worth of invoices because TransMedics is passing along all of these aircraft fees and the ground transportation fees to them. This colleague was explaining to me the situation where when they went into contract, none of this was agreed on. And so, internally, they were having trouble getting this routed appropriately through procurement at the hospital and needing to renegotiate or get it into the agreement. And so, it had been several months where they had not yet been able to reimburse TransMedics for the flight charges that they were trying to pass through to them. Well, Waleed reaches out to this transplant center, which is the largest transplant center in [redacted], and essentially gives them 48 hours to pay all of these flight charges that they never agreed to pay. TransMedics went on and incurred the charges on their own and then tried to pass along the charges to [redacted]. And essentially tells them that they are going to shut off access to the machine to them. They never even agreed to these expenses...I just found it very disturbing that they come in with these threats that their patients will no longer have access to these lifesaving grafts because they now want to be reimbursed for these flights retrospectively that they acknowledged was never in the agreement, but the incurred the charges and they want them to be paid anyway. And holding them hostage.” — Executive at a leading West Coast OPO, longtime industry veteran", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-5373-719d-a978-60387c1b9448", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.25, "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": "423047fa-abbb-47b3-9852-c40279439b2a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.86, "x": 0.07, "y": 0.07 }, "kind": "title", "text": "The OPO confirmed one of the most damning anecdotes we heard, where TransMedics allegedly extorted a center into paying for “$300,000, $400,000 worth of invoices” that appear fraudulent, giving them 48 hours to pay or “they are going to shut off access to the machine”", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "89b896b7-c9b6-4b01-b1e3-5e4dc5852ed6", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "fec478d3-6d60-4746-ba8c-d5469b75a23e", "evidence": "The slide explicitly documents an allegation of fraudulent billing and extortion.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }