SEC filings show Kindred's unsuccessful courting of Gentiva through two letters. The offer started off at $13 a share. It became $14 when Kindred went public in May with their hostile takeover. It appears Kindred wants Gentiva by hook or crook.
Also, regarding a separate but related issue, I was shocked to learn that certain Kindred executives are approaching executives in our company about going to work for Kindred, even though those executives are subject to publicly disclosed non-compete agreements. In addition, in connection with your recruiting efforts, your executives are providing to those recruits what we believe to be material non-public information that you agreed to keep confidential. Paul, I am deeply disappointed in these actions and would like to take this opportunity to remind you and make it very clear that we do not approve or condone this behavior.-- Rodney D. Windley, Gentiva's Executive Chairman
Kindred responded they "would not knowingly do" such a thing.
Gentiva lost COO Chris Russos shortly after purchasing Harden Healthcare. Gentiva CEO Tony Strange counted on Russos to mitigate integration risk. What would you call buying 160 locations only to close over half that number? Is that integration or disintegration?
Kindred and Gentiva share unethical billing practices. Each company paid the government $25 million to settle purported frauds. Kindred settled around fraudulent kickbacks, while Gentiva paid for billing the government for a higher level of service not indicated by chart documentation.
Kindred may brag of its lower turnover and employer of choice status (in direct contrast to Gentiva), but they aren't blemish free:
Four wage and hour class action lawsuits are currently pending against the Company in federal district court for the Central District of California, and are being addressed together by the court. Each case pertains to alleged errors made by the Company with respect to regular pay and overtime pay calculations, waiting times, meal period waivers and wage statements under California law. On March 13, 2013, the court conditionally certified five classes of the seven total classes sought for certification for discovery purposes and declined to certify two others. Notice of class action certification and class members’ right to opt out of the lawsuit was mailed to all of the Company’s current and former California hospital employees. The Company intends to vigorously defend these claims.
A wage and hour class action lawsuit against the Company alleging violations of federal and state wage and hour laws is pending in federal district court for the Northern District of Illinois. This lawsuit pertains to the Company’s previous automatic meal break deduction practice for non-exempt employees in the Company’s hospitals located outside California. The court granted conditional class certification in part on June 11, 2013. This lawsuit has been settled in principle by the Company’s agreement to pay $0.7 million to claimants from the Company’s five Illinois hospitals, plaintiffs’ attorney’s fees and certain administrative costs, subject to reaching a written settlement agreement and obtaining court approval.
Based upon available information, the Company recorded an additional $7.0 million loss provision in the fourth quarter of 2013 (for a total loss reserve of $12.7 million) related to these wage and hour lawsuits. The Company continues to evaluate the loss provision in light of potentially relevant factual and legal developments, including information learned through rulings on dispositive motions, settlement discussions and other rulings. The expected loss reserve is based upon currently available information and is subject to significant judgment and a variety of assumptions, and known and unknown uncertainties. Given the uncertainty of litigation, the actual loss may vary significantly from the current reserve, which does not represent the Company’s maximum loss exposure. At this time, no estimate of the possible loss or range of loss, in excess of the amount accrued, can be made regarding these lawsuits.
So Kindred ripped off employees for over $13 million in fair compensation? Gentiva and Kiindred are cut from the same cloth, each with robust Human Abuse Departments.
This should be one heck of a catfight compete with teeth, claws and lots of legal screeching.