Last Week as Publicly Traded Company

Strange Tony,

Our hospice will soon be sold as part of Kindred at Home, formerly Gentiva.  Our first day under our new sponsors will be July 2, 2018.

It's a reverse independence day as financial rapscallions will own 60% and Humana 40%.  The three plan to add another hospice company, Curo Healthcare, after the first deal closes.   Our hospice will be placed under Curo's executives, who've spent years training under various financial rapscallions.

Humana and our new owners will saddle us with massive amounts of debt, over $3 billion in borrowings for a company with just $3 billion in annual revenue.  Kindred had $6 billion in revenue for a similar amount of debt.

Moody's cited Gentiva/Kindred at Home's very high leverage levels starting out, likely at 8.0 times earnings before various items (interest, taxes, depreciation, and amortization).  Increasing borrowings is odd for a management team that cited 6.0 times leverage as a reason to leave a publicly traded stock market.  

Our executives plan on hitting a home run and personally profiting from flipping the company to Humana.  That's the financial rapscallion model.  They face many challenges as they place our hospice on the edge of a financial razor blade.  Our site's management just got bonuses, likely as an incentive to hang around.

I don't expect them to be nearly as generous with our nurses, social workers or chaplains, many of whom have gone years without a raise.  The dirty men near and they have one priority, their bank accounts.  Fireworks are coming and I expect regular employees will be burned.

Anonymous (from KAHtiva)