Monday, November 7, 2016
Kindred Stock Plummets after Q3 Earnings Announcement
Kindred announced a major strategic shift and associated write downs which resulted in a GAAP loss from continuing operations of $671 million for the third quarter. The company plans to exit its nursing home business. Kindred said it would exit its skilled nursing facilities due to "labor cost challenges." I guess those people aren't willing to work for peanuts.
Kindred President Ben Breier said, "We expect approximately half of Kindred’s earnings before interest and income taxes (“EBIT”) to come from Kindred at Home, the nation’s largest home health, hospice and community care provider."
As for enhancing shareholder value Kindred's stock is down over 50% from April. This cannot be good for long suffering Gentiva employees who've been responsible for a third of Kindred's EBITDAR. More top management attention is not what hospice employees or the people we serve need.
What future benefit cuts await for 2017? What micro-raises, if any, can employees expect for the coming year? I have a funny feeling my fellow hospice employees are waking up to our one sided relationship with Kindred. I wonder how many will exit soon?
Anonymous (from Kindredful)