RUSH: Jacksonville, Florida, and pick up John. John, you’re next on the EIB Network, sir.
CALLER: Hello. How are you today, Rush?
RUSH: Very well, sir. Thank you.
CALLER: Good. I wanted to talk to you a little bit about Obamacare and how it’s affecting my business. It has enhanced my business tremendously here in the last couple weeks. We have a German client who owns five hospitals in LA and had all kinds of run-ins with Medicare and Medicare fraud, and he supplies medical services to the poor in Los Angeles, drug rehab services, and so on and so forth. And he has decided to fold up shop and completely leave the country. And in doing so, we’re going to try and sell the hospitals to other entities, but if we can’t do that, we’re going to close them all.
RUSH: So you were being facetious when you said that Obamacare was enhancing your business?
CALLER: Well, no. I’m actually going to make several million dollars off this transaction.
RUSH: If you can’t sell them though you have to close ’em. What if you don’t sell ’em?
CALLER: If we don’t sell ’em them, we close them.
RUSH: Yeah, but you don’t make any money if you don’t sell ’em, right?
CALLER: No, we make plenty of money by just closing them. Here’s what happens. He’s got a health care corporation that is double tax entity, it’s a C Corp, and so when he wants out of his business, he’s gotta pay taxes on the money that he’s got in the corporation. He’s got about $125 million worth of properties, and if you take that amount and knock 50% off of that and then he’s got his shares, it’s a hundred percent owned by him, and then he’s gotta pay 50% tax on his shares, he only winds up with about one-fourth of what he can sell those properties at. Now, if we take the shares of the C corporation and buy the C shares of the corporation for a premium over what he would net after paying taxes, then he gets to walk away with a shareholder’s premium and we have $125 million worth of —
RUSH: A-ha! A-ha! So you’re an investment banker, obviously?
CALLER: That’s correct.
RUSH: You’re an investment banker. Can you tell me the firm?
CALLER: Yeah, the name of our firm is IMG Capital Partners.
RUSH: IMG Capital Partners. So this guy is going to have to close up and sell to you in a strange way, rather than sell the properties himself because he would lose money doing so. He can’t stay open because Obamacare is coming down the pike, so you’re going to arrange a deal here where he can net a little bit more than what he would get after his taxes are paid, you end up with $125 million asset to sell, or own?
CALLER: That’s correct. And you know what, I’d love to keep these hospitals open, I’d love to sell them to somebody else. These hospitals are making, by the way, $120 million in profit per year — (crosstalk)
RUSH: Servicing the poor?
CALLER: — ninety million dollars’ worth of deferred income sitting in them, too.
RUSH: Wow, and this guy’s gotta shut them down because of Obama. Well, that’s a story. First of many such examples I’m sure we’re going to hear about after the first week or two.