Saturday, June 25, 2016

Causby's Next $1 Million Bonus to Come from Showing Up

On March 30, 2016 Kindred Healthcare added another employment agreement for Kindred at Home CEO David Causby.  For staying 16 months with the company Causby will earn another $1,000,000.  Causby merely has to make it to August 1, 2017 and his work must be satisfactory.

During this time former Gentiva employees will lose their retirement match from Kindred at Home.  It's slated to end December 31, 2016.  Causby should have a great 2017 as his pay soars on the backs of those delivering care.

How many Gentiva employees knew about Causby's retention bonus?  How many know about the stepped down 401k match for former Gentiva employees?  How many know when the company will make good on the match?

Gentiva employees are providing Kindred's synergistic cost savings through greatly reduced benefit contributions from the company.  What Kindred pocketed in 2016 should grow exponentially in 2017.  That's when the 401k match evaporates completely.

Cauby's agreement was executed by Kindred's Stephen Cunanananan, Chief Peephole Officer.   Former Gentiva employees would recognize Cunanananan's role as Vice President for Human Abuse.  We're now part of Kindred, where the executive mantra is "My Pay Matters."

Wednesday, June 22, 2016

Kindred Pays $39 million for Arkansa at Home

Kindred Healthcare plans to purchase the State of Arkansas' home health, hospice and personal care agencies in an announced $39 million deal.  This deal is 18 times larger than Kindred's last buyout, the $2.15 million purchase of CFO Stephen Farber's personal home. 

Kindred intends to keep the Arkansas agencies, yet plans to sell the multi-million dollar Louisville estate.  When will it be listed?

Thursday, June 16, 2016

Kindred's Low Bar Investor Presentation


Kindred Healthcare President spoke to the Bank of America Merrill Lynch Healthcare Conference in Las Vegas.  An early remark expressed regret at keeping attendees away from the bar.  Then he moved on:. 

"God forbid you need hospice."

Many of our hospice patients spent their life bellying up to the bar.  There is a price to pay for habitually seeking solace in things incapable of providing it.

Kindred at Home has 38,340 caregivers.  How would they take his comment? 

Eventually our hospice may need hospice due to high financial leverage and poor health choices.. Our President might recommend another drink or smoke to relieve anxiety.  

Anonymous (from Kin-forbid)

Friday, May 13, 2016

Ben Breier's Hospice Tale


Kindred held their earnings call last Thursday and President Ben Breier was effusive in his praise.  He said:

In the hospice segment our team has made terrific progress on the challenging reorganization we've undertaken over the past three years. We have seen significant stabilization over the back half of 2015 and this quarter we saw the first quarter of year-over-year census growth since our acquisition of Gentiva with patient days increasing 2.9% year-over-year. 

Not said:  Patient days actually fell from Q4 2015

This growth comes despite average length of stay decreasing by three days and branch network consolidation reducing the number of hospice sites from 193, at the beginning of 2015, to 175 at the beginning of 2016.   

Not said:  Admissions increased by 70 from Q1 2015  With 177 hospice sites that's an increase of 0.4 of an admission per site.  Average daily census rose by 223 for the hospice segment or an additional 1.25 patients per day census wise for each site.
Average hospice revenue per branch grew more than 8% between the first quarter of 2015 and the first quarter of 2016. 

Not said:  Less branches and stable revenues will do that.  Hospice revenues decreased by $1.8 million from Q4 and are the lowest full quarter since Kindred bought Gentiva.

We expect to see continued hospice growth driven by demographics as well as expected enhanced hospice utilization rates. We also look to expand our hospice presence with tuck-in acquisitions in markets not yet adequately covered by our existing branch network.

So far this year we have acquired hospice operations in North Carolina, Ohio and Florida. We're pleased with the margin improvement in our home health and hospice businesses as they each provided on a year-over-year basis up by nearly 1% when last year's quarter is appropriately adjusted on a pro forma basis to include January.  

Not said:  Part of that Q1 margin improvement came from health care and retirement benefit reductions for former Gentiva employees.
I am glad to do my part to make our hospice more successful in care delivery.  My hospice co-workers and I don't want to personally sacrifice to enrich senior executives.  Q1 included $38 million in incentive payments to Kindred at Home executives and a relative handful of other employees.  Their bonuses alone ate up 21.5% of our first quarter hospice revenue.  That is evidence of the distortion from above.  It can't be called leadership.  It's far too selfish.

Anonymous (From Kindred where revenue declines are growth)

Tuesday, May 10, 2016

Kindred Bought CFO's House for $2.15 Million


WDRB reported on the lawsuit saga for three neighbors who fought over a shared driveway, amongst other things.  The three share a historic property just outside Louisville, Kentucky.  All were relatively new owner of their respective properties, which included a permanent access easement for the shared driveway.

Mr. Fenley's lawsuit expressed a number of concerns with Mr. Farber's contractors which caused him to offer to build a separate drive for his neighbors.  Fenley and Haynes prevailed in stopping the building of a new driveway.  Their legal stance expressed a number of concerns about Fenley's proposal, including increased difficulty with stormwater control, the removal of large mature trees that were part of a former owner's landscape design and the loss of an aesthetically pleasing entrance.

On December 1, 2015 the parties attempted to mediate their conflict without success.  Oddly, Mr. Farber's employer Kindred Healthcare had their in house attorney attend the personal mediation. The Fenley amended complaint stated Kindred had plats and survey drawings of all three properties drawn up.  That's a high amount of employer involvement in an executive's personal dispute 

This mediation occurred less than a week after Kindred Healthcare gave Mr. Farber an additional $250,000 for "moving expenses."  (Generic Hospice reported on this development November 26, 2015.)

On December 18, 2015 a division of Kindred Healthcare purchased Mr. Farber's home for $2.15 milion.  Farber paid $1.7 million for the home before embarking on a $200,000 + renovation which upset his neighbor.

On December 30, 2015 Kindred began removing the very trees Farber argued to preserve the historic landscape design.  Mr. Fenley asserts in doing so, Kindred damaged his property.

The Fenley complaint has a number of tidbits that color the deterioration of neighborly relations. It reads of strong willed people wanting to have their way.  There is little evidence of civility or the ability to come to conflict resolution in a neighborly manner.  They could not come to resolution with highly paid mediation lawyers. 

Yet, Kindred's Board of Directors chose to take two highly unusual acts.  First, they gave Farber $250,000, on top of the original $110,000 in moving expenses for 2014.  Second, the board bought his house for a premium price then took an action that Farber legally fought against with the aid and support of Kindred's legal counsel and contractors.

One Kindred employee received $360,000 in moving expenses in twenty one months.  We have hospice employees who it will take nearly fifteen years to make in wages Farber's Kindred moving benefit.

It's good WDRB reported on the story.  It's sad priorities are skewed for executives lacking the basic skills to resolve conflict.  Frankly, we see the same distortions at our local hospice site.

Anonymous (from Kindredview Avenue)

Tuesday, April 5, 2016

Kindred's Shameless Executive Compensation Made Public

President Ben Breier received nearly $5.5 million in executive pay.

Kindred at Home President David Causby's pay, fueled by his second $1 million event under Kindred, got over $4.4 million. His first $1 million event came in lump sum cash, the second $1 million was bonus money.

However the oddest compensation went to Kindred CFO Stephen Farber who needed $2.15 million to flee a dangerous neighborhood of millionaires incapable of sharing a driveway.  Kindred's board did not call the police, but instead wrote a check for nearly $500,000 more than Farber paid for the house, throwing in an additional $250,000 in moving expenses (on top of the $110,000 for moving expenses in 2014).

Kindred executives look out after their own.  The other 101,500 employees aren't so lucky.

Saturday, April 2, 2016

No April Fools: Breier Gets $3.5 million in Restricted Stock


Kindred CEO Ben Breier received 283,203 shares of restricted stock on March 24, 2016.  Kindred's stock closed at $12.57 per share on April 1 giving Breier $3.5 million from one portion of his executive compensation package.  That's no April Fool's joke but a sad reflection of misplaced priorities. 

Hospice roots are antithetical to leadership greed which spread like a cancer in the last ten to fifteen years.  Ethically our hospice site is dead, rotting from the head down.  Fortunately, we still have a few people who live and breath the origins of the hospice movement.  When they leave or retire the stink will spread.

The question is how much Ben Breier will have earned in total compensation by then.  We'll get a peek at his 2015 pay soon enough.  The executive money trough is full and overflowing.  I bet the pigs don't even need calling. 

Anonymous (from Dredkin)