Saturday, May 27, 2017

Kindred Management Still Working on Wall Street Promises

Strange Tony,

I recall your finding management's obsession with financial measures limited and uninspiring  When Kindred purchased Gentiva it projected the combined company would produce $1 billion in EBITDAR.

Every year since the buyout management came up short.   Kindred executives announced the shortfall will grow with the sale of the nursing home division.

Kindred had core EDITDAR of $950 million for 2016.  Core EBITDAR declined 3.1% to $950.1 million compared to $980.3 million in the same period in 2015. 

The company reaffirms 2017 guidance for core EBITDAR of $930 million, with a range of $910 million to $950 million.Says for 2018 reaffirms core EBITDAR of approximately $840 million.

Core EBITDAR dropped after management's $1 billion promise.  Kindred's employee numbers also fell since the Gentiva deal.

109,000 -- October 2014 - Kindred plus Gentiva employees
102,000 -- December 2015
100,100 -- December 2016

After announcing Kindred's buyout of Gentiva the number of jobs fell by 8,900.  Benefits deteriorated in nearly every area after Kindred took over Gentiva.  Even taking out of employees pockets Kindred couldn't make its EBITDAR promises.

I feel another sale may be coming.  It was the exit strategy for Gentiva managers who bragged about their ability to operate and the depth of their bench.  All Gentiva executives took the money and all but one ran with their new fortunes.  Only COO David Causby took the money and stayed for a series of $1 million Kindred bonuses.  His next one will come just for showing up on August 1.

Exit is also the route many excellent and underappreciated hospice employees take.  Our site is gearing up for another exodus.  Why is it mostly the good, caring employees who leave?  Why are they designated as not eligible for rehire?

Management is too focused on shallow measures to see the depth of commitment and caring.  They don't know what our site has lost and will lose.  Their eyes and ears are trained on EBITDAR to the exclusion of service and caring.  Executives also ignore competitive pay and benefits for those doing the work.

Anonymous  (from numbers obsessed, underachieving Kindred)

No comments:

Post a Comment