Citron goes short Agilon, says Supreme Court ‘torpedoed’ business

Andrew Left’s Citron Research released a short report on Agilon Health saying the company’s best days are behind it. Agilon’s business model "unknowingly got torpedoed by the Supreme Court of the United States without Wall Street noticing," Citron writes in a report posted on its website. The Supreme Court declined to hear UnitedHealth’s (UNH) challenge to a federal rule stipulating insurers offering Medicare Advantage plans refund payments based on unsupported diagnoses in patients’ medical records, Citron notes. It says Citron’s business model is to partner with primary care physicians and generate profits shared from cutting costs and Medicare overpayments. Agilon "does not own clinics, does not own practices, does not have long term contracts with payors," writes Citron. "This unprofitable business is based on arrangements with physician groups to split additional profitability once uploaded on the agilon platform," it adds. Shares of Agilon Health are down 4% to $17.44 in afternoon trading. Reference Link