Significant financial risks include opioid-related litigation settlements, adverse macroeconomic conditions (inflation, interest rates, supply chain), equity method investee performance, goodwill impairment, fluctuating reimbursement rates, vendor/payor/customer relationship changes, strategic transaction risks, regulatory changes, and potential cash flow issues from subsidiaries. The company faces substantial debt, and its credit rating downgrade increases borrowing costs and limits access to capital markets.
Financial Upside
Potential financial upside includes executing business strategies, maximizing shareholder value, expanding consumer-centric approach, strengthening partnerships, improving health outcomes, monetizing non-core assets, and improving cash flow generation. The Footprint Optimization Program and Transformational Cost Management Program aim to reduce costs and increase operating efficiencies, potentially boosting adjusted operating income and cash flows.
