Friday, November 7, 2014
Kindred Selects Gentiva COO for "At Home" Division
The latest reports from Kindred suggest more pain for our hospice. Borrowings are now projected at $1.8 billion with a mere $200 million in equity. That's 90% debt and 10% equity. The $200 million in equity will cover deal (money changer) fees of $183 million with $17 million to spare.
As for Q3 earnings Gentiva presented possibly the sparsest financial information I've seen from a public company. Internally, senior executives prioritized hospice margin discipline over patient care and customer service.
My hopes for the slightest shift in priorities fell when Kindred announced Gentiva COO David Causby will become President of Kindred At Home. The Kindred buyout looks to continue our heart breaking arc with two primary drivers, rising interest expense amidst flat federal reimbursement and no change in top hospice leadership.
It's going to be a great year for Gentiva and Kindred's top dogs and money changers. Kindred CEO Paul Diaz will receive over $6 million in March 2015. The rest of us likely face no raises (yet again) and fear of job loss. Also, no word yet on those long promised hospice computers. Diaz' $6 million payout is six months of Gentiva's capital expenditures in 2014.
We shall see what crumbs fall from the executive table. I'll venture very few.
Anonymous (from Gentiva)