(July 23) Five former Fresenius Medical Care North America executives, four of whom resigned within the last seven days, are starting a new dialysis provider company called American Renal Associates.

On Wednesday, July 28, several new changes were seen on the FMCNA Senior Management Team listing.

Initially, the announcement had little effect on the Fresenius stock price. Here is an explanation (unconfirmed) of the different Fresenius stock listings.

(August 3) FMC-AG announced its second quarter earnings.


[This message has been edited by Gary Peterson (edited 08-24-1999).]

Did Ben Lipps, trying to make a splash in his first year as CEO, realize that the US market is overpriced and decide to go elsewhere for the growth he needs to keep his job? What's the going rate for US patients these days? $60,000-70,000 per patient? Look what happened at TRC when you pay the going rate.

I think these ex-FMC guys have a difficult road ahead of them. They have a venture capital company funding them. They'll want money back fast. Then they have to sign up some high profile doctors. That will take significant money or stock. They have to recruit some top middle manager talent. That will take money or promises of stock. I think that anyone that is trying to decide whether to work for these guys should read their stock options offers very, very carefully. The money and preferred stock will likely go first to the venture capital company, second to the company executives, third to the doctors, then to the middle managers, and last to the employees.

When you factor in the accompanying contracts for acute dialysis treatments into some of these recent acquisitions, the per patient price has been as high as $90K - $100K.