Strange Tony,
Kindred executives want employees to believe investment bankers developed the complex transaction for our benefit. That is absurd on its face. Yes, President Ben Breier offers hollow thanks to employee partners at the beginning of each quarterly earnings call. After that salutation labor is only mentioned as a cost to control.
A financial advisor discussed "with the Board the Board’s fiduciary duties in connection with a potential sale of Kindred and the differing incentives that senior management may face if Kindred pursued a transaction with a private equity buyer as compared to a strategic buyer."
Kindred's moving forward is for the benefit of the board and senior executives, not employees. Humana's CEO stated future cash flow will be used for acquisitions with nary a mention of employee raises. Somehow Humana needs to pay 2.5x to 3.5x more EBITDA for 60% of Kindred at Home to two private equity firms for a few years of ownership.
President David Causby and senior executives will participate in this premium exchange through their equity holdings in a private Kindred at Home. Humana executives led by example by goosing profits to maximize recent bonuses. Our future owner used atypical accounting to juice executive pay. Greed is as greed does at both Kindred and Humana.
Employees are but numbers to TPG Capital, WCAS and Humana. They won't know us for the work we do, for the care we provide, or for our hospice staff's heartfelt dedication. New words have been spoken at our hospice. They will know us by our numbers. Executives will be handsomely enriched on our backs.
Breier and Causby did not partner with employees to take the company private. They partnered with financial rapscallions for their benefit.
Anonymous (a real person inside Kindred)
Anyone who thinks Humana is going to magically open their purse strings is sadly misguided...they will cut services, change variable compensation, reduce rep commissions, and thin the workforce to maximize their investment. No one ever said "this VC company came in and gave us raises, expanded our services and made the whole company so much better!"
ReplyDeleteHumana outsources their customer service rep and claims processing. Just sayin. I told former co-workers and told them, over and over they need to get out but they stuck it out, hoping for better. I hate to say I told ya so. Oh who am I kidding. Gentiva/Kindred treated me like dung so I'm not really sorry. I never wished ill but can't say I am not enjoying the view. If they had been nicer to me and stayed in touch, I could put in a good word for a few of them. But naw...
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