Strange Tony,
Think back to your hospice days. Would you or any of your co-workers have found these words inspiring?
“You have very high multiples right now with the demographics that are trending; those multiples have to come down over time if you look at historical averages,” Larry Graham, founder and CEO of hospice and home health provider Curo Health Services said at Summit. “Private equity is very interested in the home care and hospice space which is driving up multiples at this point in time. I think the future changes to reimbursement, such as the [Medicare Advantage carve-in] will have an impact on multiples coming down.”
Private equity are the financial rapscallions that partnered with Humana to buy Kindred at Home and Curo Health Services. They crammed our hospice into Curo, and together they destroyed our level of service.
What Graham didn't say is he made big money under various financial rapscallions.
Larry Graham co-founded Curo in April 2010 with GTCR, a Chicago based private equity firm. He made huge profits from the next two sales of Curo Health Services to private equity owners. Graham got a chunk of the $730 million Thomas H. Lee paid GTCR for Curo in 2015. Three years later Curo's speculative debt rating went negative. In July 2018 Graham got a portion of the $1.4 billion Humana, TPG Capital and WCAS paid Thomas H. Lee for Curo.
Graham partnered with financial rapscallions from day one with Curo. His wealth is beyond what a normal person could spend in several lifetimes. The rabid pursuit of more money does not make hospice better. It makes it worse for employees, physicians, patients and families.
At the same conference Graham said "I am a firm believer in technology" and "the overall goal will be keeping patients out of the hospital." Curo's technology cheats employees on paid time and mileage reimbursement. The clinical portion of Homecare Homebase is garbage in-garbage out at our hospice as nurses don't have time to take the program's various rabbit trails.
That's a nice stripped suit. Over time Curo's technology may have CEO Graham switching suits to one with more white.
Anonymous
Hospice CEO Larry Graham's next giant payday comes when Humana buys out the 60% it does not currently own from TPG and WCAS. That will come at a 10.5 to 11.5 multiple of earnings before interest, taxes, depreciation and amortization. Post takeover David Causby and Larry Graham grew EBDITA nearly 20% at the direct expense of employees, cutting holidays and holiday pay, cheating staff from fair pay for hours worked and miles driven, making nurses salaried and increasing insurance deductibles via crappier health insurance. Merit raises at our site were a joke. Expect more for the next few years under our un-meritous executives. They are a greedy, heartless lot. All the damage they did harmed patient care significantly.
ReplyDelete"Whoever loves wealth is never satisfied with their income."
"Humana Inc. (NYSE: HUM) will eliminate just over 800 positions, about 2 percent, of its roughly 41,600-employee workforce.
ReplyDeleteThe announcement came on Monday, about a week before the company is slated to release its financial performance for the third quarter that ended on September 30.
The company has been shrinking its workforce since 2017. According to Louisville Business First research, Humana had 51,600 employees in 2017, about 45,900 in 2018 and about 41,600 in 2019.
Nixing about 800 jobs would put Humana's workforce near 40,800."
Here's how lazy management is:
"Employees whose jobs have been eliminated may apply for the 2,000 or so jobs that are open within the company."
Kindred at Home employees pay attention. We are now a cost center within Humana, or that is the eventual plan. Costs are meant to be cut. One year under the Humana/Curo people showed that distortion at our site. Care suffered as a result.
https://www.bizjournals.com/louisville/news/2019/10/29/humana-to-layoff-hundreds-ahead-of-earnings.html?ana=yahoo&yptr=yahoo
Here's how inspiring our new 40% owner Humana is:
ReplyDelete"Humana will inform employees if their positions will be eliminated over the course of the next three days. The jobs will be eliminated by the end of the year."
Drive in fear and by the way, Happy Holidays, Bruce "Bonus" Broussard
Interesting that Larry Graham's multiple is already baked into the deal. His multiple won't be coming down with Medicare Advantage changes. How much cash will he pull out of Kindred at Home when all is done?
ReplyDelete