Vultures to Own Our Hospice Once Again?

 Strange Tony,

Humana is yet to sell or spin off our hospice after acquiring 60% of Kindred at Home from financial rapscallions TPG Capital and Welsh, Carson, Anderson and Stowe in August.

From 2012 to 2019, the number of hospices owned by private equity companies tripled. The pace of acquisitions seems to have only gotten faster during the COVID-19 pandemic.

Our time under private equity ownership was particularly painful.  Financial vultures decimated staffing and our service levels.   

Bad deaths, once very rare, became more common due to lack of staff and greatly increased operational complexity.  The company put in place bureaucratic steps for medications and supplies formerly readily available. 

Our hospice will likely end up under greedy ownership, yet again.  Lord help us all,

Anonymous

Executive Kane Paid Millions Extra for Not Working

Strange Tony,

Humana CFO Brian Kane announced he would step down in March 2021.  CFO Dive said:

As part of the transition period, Kane will continue to receive his salary, annual incentive plan opportunity and benefits through the end of the year, Humana said in a filing with the Securities and Exchange Commission and reported by Fierce Healthcare.

When he does leave the role, he will earn severance pay and stock incentives he would otherwise secure in a "position elimination," Fierce reported.

As a publicly traded company Humana is required to make certain disclosures.  

His separation agreement had his base pay of $765,000 continue until 12-31-21.  Any work performed after that date will be paid at a $367.79 an hour.  Kane will receive his Annual Incentive Compensation for 2021 and continue to receive company contributions to his retirement.  His Humana benefits continued and so did executive perks for physicals and charitable donations matched up to $60,000.

Kane's separation compensation was reported in a March 2021 SEC filing to be $3.3 million for "involuntary termination without cause."  His big haul will come from vested stock options and other stock compensation.  As he is no longer CFO the public will likely not know how many tens of millions more Brian Kane received.  The SEC filing indicated Kane had $17.2 million in options and stock awards but he has had another year for them to vest.

Humana chose not to disclose information on Kindred at Home's financial performance since it acquired the rest of the company in August.  It has been silent on Humana executive participation in Kentucky Homecare equity.  Kane was one of three Humana representatives on Kentucky Homecare's board.  Did Brian Kane, Bruce Broussard or Susan Diamond make profits from flipping any KH equity stake to Humana?  If so add that to Brian Kane's giant separation payday.  

It's galling that Kane's charitable contribution match is more than the annual pay of many of my hospice co-workers.  However, he cannot take his unjust riches with him when he leaves this earth.  

Anonymous

Humana Selling Curo-Kindred Hospice to "Free Up" Capital

Strange Tony,

Humana CFO Susan Diamond spoke at the Bank of America Securities Home Care Conference.   The moderator expressed his excitement about Diamond's background heading Humana's Home Division.  Before perusing a summary of her remarks, recall Humana served as the operating partner of Kindred at Home since July 2018.  Humana purchased the remaining 60% it did not own in August 2021.

The moderator asked why Humana would not hold onto Kindred at Home's Hospice Division?  Diamond said:

Given the amount of capital invested in the asset there is an opportunity to monetize the value of that asset, spin it off or set it up for independent operation.  It will free up capital, allow us to de-lever more quickly, allow capital to be deployed where we have stronger conviction that we need to own the asset.

Diamond indicated durable medical equipment as one such area.  She said Humana will eventually provide DME for all the people it insures.  Not so with the hospice division.

We will divest a majority stake and sell the rest of the company over time.

The moderator asked about the financial impact of selling the hospice division on Kindred at Home.

We intend to update disclosures in 2022.  It is hard to see the impact under current disclosures.  At the time of the buyout KAH had annual revenues of $3.2 billion and full year EBITDA of $650 million.  EBITDA is split close to 50/50 between Home Health and Hospice.  Hospice had a higher profit margin than Home Health.

She referred to the hospice division as "Curo - Kindred's hospice business."  In talking about the future of Home Health Diamond talked about staff.

Home Health could have top line organic growth of 6%.  Mergers and acquisitions could accelerate that.  The challenge comes in hiring/recruitment/retaining clinicians to take on that volume.  The industry just accepted higher turnover as a cost of doing business.  I have been challenging the Kindred team to buck that theory.  There are systemic challenges underneath.  Demand for nurses outweighs supply.  We need to train more nurses.

Humana has been the operating partner for Kindred at Home for more than three years.  Humana fomented massive turnover at our hospice via Curo Health's crappy, unreliable technology and sparse staffing model.  Humana ran off competent, well trained hospice nurses to the point our hospice census dropped 50% from July 2018.

Under Diamond's leadership Kindred at Home cut holidays 33%, reduced holiday pay 50%, rarely gave a pay raise, and consistently shorted staff on hours worked and miles driven.  That may have contributed to high employee turnover.

Humana wants to be the employer of choice in all areas of the home.  We are offering sign on bonuses and retention bonuses but are trying not to impact run rates (overall salary costs).  We expect to see some wage inflation but that will work its way into reimbursement.

Hesitant to raise wages until the very end, that's executive greed nowadays.  How dare the little people be paid like the Diamonds in the C Suite. 

CFO Susan Diamond had a HP Printer in clear view behind her.  I'm sure the boys at Bank of America know Humana CEO Bruce Broussard sits on HP's Board of Directors.  It's but one more handsome check for Bruce as his company conducts wage and mileage theft from hospice workers.

 Anonymous

Humana Values Kindred at Home at 21x 2018 Buyout

Strange Tony,

Kindred at Home President David Causby made his first king's ransom when Humana and financial rapscallions bought the company on the cheap.  His second came in August 2021 when the value of his stock rose 87% in three short years.  A galling third could come when Humana monetizes our hospice yet again.

Humana's latest SEC filing indicates how richly it valued Kindred at Home relative to the paltry $9 per share amount Kindred Healthcare shareholders received in 2018. 

"compelling all-cash transaction with affiliates of TPG Capital, Welsh, Carson, Anderson & Stowe and Humana Inc."

"total funds needed to complete the merger and the transactions contemplated by the separation agreement (including the funds to pay Kindred stockholders and to pay the holders of other equity-based interests the amounts due to them under the merger agreement), which would be approximately $821.9 million."

Humana purchased 40% of Kindred at Home which represented just over one third of Kindred Healthcare's annual revenues.  Breaking down the $821.9 million in KND equity as a proportion of revenue associated with that segment reveals:

40% of Kindred at Home Humana = $114 million

60% of Kindred at Home WCAS/TPG = $171 million

Kindred Healthcare WCAS/TPG = $536 million

Humana valued its initial equity stake (which includes Curo Health) at $1.3 billion, over 10 times what shareholders received.  That increased to $2.4 billion, 21 times the value of KND equity in 2018.

Humana purchased the rest of Kindred at Home in August 2021.  Assets equals liabilities plus shareholder equity.  

Assets = $9.1 billion

Liabilities = $2.9 billion

Shareholder equity = $9.1 billion - $2.9 billion or $6.2 billion

Somehow $285 million in 2018 KAH shareholder equity turned into $6.2 billion, a multiple of 21.7 times.  

Of the $9.1 billion in assets nearly $5.8 billion is goodwill and $2.3 billion in other intangible assets.  That's $8.3 billion in assets that could potentially evaporate.

KND Shareholders weren't the only ones short-sheeted by Humana et al.  My hospice coworkers received no to paltry raises while executives robbed them of fair pay for hours worked and miles driven.  Greedy executives cannot take it with them when they leave this earthly plane. 

Anonymous

Kindred Hospice Sale on Track, Nurses in Short Supply

Strange Tony,

It turns out Humana ruined more than our hospice since buying Kindred at Home in July 2018.  In year one Humana reduced headcount, gave us crappy technology, stole pay and mileage reimbursement from staff, and cut the number of holidays and holiday pay. The next three years our owners choked the life out of our once nationally recognized hospice.

Expectations must be set for Humana's spinoff of our depleted hospice.  The cash-in remains on track, according to Humana's Q3 earnings call.

Bruce Broussard:  President and Chief Executive Officer

With respect to hospice, our intent remains to ultimately divest the majority interest in this portion of the asset. As our experience has demonstrated, we can deliver desired experiences and outcomes for patients transitioning from restorative care to hospice through partnership models. Since we closed the transaction in August we have continued to explore alternatives for the long-term ownership structure for the business and have initiated steps to reorganize the hospice business for standalone operations, while also ensuring business continuity and monitoring underlying trends. We do not have a further update on the specific transaction structure or expected transaction timing, but we will provide additional updates as appropriate moving forward. Given the continued expansion of an interest in our healthcare service platform we are committed to providing additional disclosure to give further transparency into the performance of these businesses beginning with our first quarter 2022 reporting. 

It's odd that Humana won't report on the performance of Kindred at Home until Q1 2022 as they completed the buyout in August 2021.  What do they have to hide?

Susan Diamond:  Chief Financial Officer

Similar to Home Health and Hospice peers, the business is being impacted by COVID and labor shortages. For the third quarter, home health admissions grew low single digits year-over-year, while hospice experienced a low single-digit decline year-over-year.

We will continue to closely monitor trends as we made targeted investments to sustainably improve the recruitment and retention of nurses.

Staff got the message from Broussard, Diamond and KAH President David Causby, returning their lack of loyalty.  One can't bill for services not provided due to lack of staff.

Anonymous

Breier to Get Second King's Ransom on Employee Backs

Strange Tony,

The man who sold our hospice down the river will retire after his second king's ransom.  Kindred Healthcare CEO Ben Breier will depart after LifePoint Health closes their buyout.  

Breier, fellow miscreant David Causby and a lazy, conflicted board sold us out on the cheap to Humana and two financial rapscallions, TPG and Welsh, Carson, Anderson and Stowe. 

While their executive holdings grew as a multiple of EBITDA employee wages barely budged.  Brier and Causby forced a series of dullards on our hospice site, each pretending to be managers.  Our census went from over 100 patients per day to the 30's.  Along the way they cut the number of holidays by a third, reduced holiday pay by 50% while robbing dedicated employees of pay for hours worked and miles driven.

Ben Brier and David Causby destroyed our once great hospice and for that I curse them. They should enjoy their lavish wealth while on this earth as they too will face their maker and have to account for their treatment of others.  Executives who institute evil systems are not immune from the consequences.

How big of a jerk do you have to be when rapscallions at WCAS and TPG don't want to keep you on as an operating executive?  That's our Ben.

Anonymous

Kindred Hospice/Curo Health Sale: Private or IPO?

 

Strange Tony,

The Senate Finance Committee's letter to Kindred at Home CEO David Causby had a September 3rd deadline for response.  The Senate Committee asked for detailed information on finances and operations.  The committee missed two significant areas in their letter, executive stock ownership and Humana's role as operating partner alongside two financial rapscallions.

Will the Senate letter steer Humana to sell Kindred Hospice/Curo Health to yet another financial rapscallion instead of conducting an independent public offering (IPO)?  Such a move would keep financial statements away from public scrutiny.   

Our hospice continues to implode under 100% Humana ownership.  Most of the Mean Girls fled the sinking ship and are now with competing hospices.  I am sure they will continue their damaging ways there.  Meanwhile, Humana's reign of error continues.

Anonymous

Is Gentiva Name Coming Back?

Strange Tony,

Humana has the opportunity to name the hospice division it intends to spin off.  Possible names are:

1.  Kentucky Homecare Parent - the name used by Humana and financial rapscallions to buy Kindred at Home in summer 2018.

2.  Gentiva (New) -  the entity issuing debt to finance Humana et al's buyout in summer 2018.

3.  Kindred Hospice -  the larger hospice entity bought in the Kindred at Home purchase

4.  Curo Health Services -  the smaller hospice entity added shortly after Humana's KAH acquisition

5.  CenterHell - the payor agnostic "Center" name selected by Humana plus the evil management instituted by greedy Humana executives "Hell".

It looks like Gentiva might be returning, especially as the Director of Corporate Communications for the company has a gentiva.com e-mail address.  Will they bring back Tony Strange?  There is a nod to his YCCOM promotion in the message from KAH.  

Just like they always have executives profited handsomely.  Hospice staff got jack squat under Humana's CenterHell.

Anonymous

Kentucky Homecare dba Kindred at Home's Board

Humana purchased the rest of Kindred at Home in August with plans to sell/spin off/IPO the hospice division.  The latest public information on the Kindred at Home (Kentucky Homecare) board showed financial rapscallion representatives from TPG Capital and WCAS.  Those gentleman are likely gone from the board and celebrating their massive returns.

SEC and state filings revealed Kentucky Homecare's board.  Humana executives Bruce Broussard and Susan Diamond spoke to Morgan Stanley this week.

 

CEO Broussard's background looked like an executive washroom or a pandemic bunker.

CFO Susan Diamond offered the following expression after the moderator asked about future plans for Kindred at Home.  

Broussard did not address the sale of the hospice division, nor did CFO Diamond.  They view care in the home as a cost center, which likely means Kindred at Home's longtime "no raise" and "mileage theft" strategies will remain in place.  

The sale of the hospice division will provide billions in capital to parent Kentucky Homecare/Humana.  Hospice employees will see none of that.  

Anonymous

Broussard Appointed to HP Board

Strange Tony,

Humana parked our hospice's HP Laserjet color printer when it took over as the operating partner for Kindred at Home.  We used that color printer to create personalized certificates, birthday cards and other special occasion cards for hospice patients, their families and staff.  

When Humana installed Curo's crappy technology they did not add the color printer to the network.  The printer had new ink cartridges.  A few months later they removed it.

Management said a hospice our size, over 100 patient daily census, did not warrant a color printer.  I asked management if we could just use up the remaining ink.  Our site just paid for those new laserjet cartridges.  Humana said no.

I assume most of Kindred Hospice's 178 locations had a color printer and that nearly all those disappeared.  HP must not have been aware of Humana CEO Bruce Broussard's decimation of their hospice footprint when it appointed him to their board.  

It took Broussard time and an outside vendor to understand the importance of celebrating patient life events.  His desire to grow hospice EBITDA robbed our hospice of that durable gift to patients, families and staff.  

HP pays board members over $300,000 per year.  That a minor payday for Broussard, who plans to flip our hospice for up to 26x EBITDA.  Greed ruined our hospice and Humana is but the latest owner making bank on our backs.

Anonymous

Humana Yet to IPO Kindred/Curo Hospices

Strange Tony,

My coworkers await Humana's sale of our hospice.  Reports call for an independent public offering (IPO) that was expected to occur in close proximity to Humana's purchase of the 60% of Kindred at Home owned by financial rapscallions.  

One can look at the IPO of Aveanna Healthcare as a proxy for our hospice spinoff.  Aveanna has former Gentiva executives on board, Executive Chairman Rod Windley, CEO Tony Strange and COO Jeff Shaner.   Financial rapscallions Bain Capital and J.H. Whitney hoped to IPO Aveanna at $18 per share.  It went public on April 29th at $12 per share.  It currently trades around $9. 

Financial rapscallions add huge amounts of debt when they buy healthcare companies, resulting in big increases in annual interest expense.  They also impose deal and management fees on affiliates.  Aveanna paid Bain an advisory fee of $400,000 in September 2020.   That was on top of the annual management fee paid to sponsors of $808,000 per year. 

Tony Strange holds over 1 million Aveanna shares with millions more in options at $4,88 per share.  Kindred Hospice executives David Causby and Larry Graham likely made huge profits from Humana's purchase of Kindred at Home.  Causby will likely roll over his massive profits into our hospice spinoff.  I expect Larry Graham to slither off to another early stage company owned by a financial rapscallion.  It's his nature.  

Causby will remain so he can continue optimizing the company to his personal benefit.  Employees can expect jack squat.  That's what greedy senior leaders consistently delivered to workers.

Anonymous

Senate Too Late to Explore Kindred at Home Ownership

Strange Tony,

The U.S. Senate will explore the impact of 60% financial rapscallion ownership of Kindred at Home now that Humana owns 100% of the company.  It's like shutting the barn door after the cows got out, went onto a busy highway and numerous accidents killed many people and cows. 

Humana was the "operating partner" since their June 2018 buyout of Kindred at Home alongside TPG Capital and WCAS.  Humana recently acquired the rest of the company.  The Senate should explore Humana's operation of Kindred at Home.  

Financial rapscallions were along for the ride, courtesy of Humana CEO and former WCAS operating executive Bruce Broussard and a Kindred Healthcare board member from TPG Capital.  The dastardly ownership trio and unethical executives Ben Breier and David Causby negotiated a low-ball $9 per share for the company. 

Under Humana and financial rapscallion ownership raises were sparse to nonexistent, tens of thousands of jobs were eliminated, and nurses were switched to salaried so they could work 60-80 hour weeks and be paid for 40.  Before the change the company routinely underpaid staff for hours worked and miles traveled.  Compensation theft merely changed forms under Humana operation.

Humana gave us crappy, unreliable technology that lengthened the work day for the few remaining employees.  It enabled management to spy on employees without their knowledge.  It failed regularly leaving patients and their families with no method to reach our office.

Customer feedback plummeted and was summarily ignored.  Employee feedback was most unwanted.  The company used compliance complaints to target employees for elimination. 

Financial rapscallions would rather pay interest on debt than fairly reward employees.   Executives worked on their next king's ransom payday, as the last few buyouts did not enrich them enough.  

The U.S Senate is two decades late in examining the impact of financial rapscallions on healthcare.  They couldn't get their act together to reign in surprise medical billing, a grossly unfair and unethical practice started under financial rapscallion ownership.

Elected leaders allowed financial rapscallions to explode in size, scope and number.  They kept preferred taxation for founders, most of whom became billionaires.  Public companies imitated rapscallion practices, with outsized riches at the top and jack squat for the people actually doing the work.

Look at Humana's latest SEC filing.  It reveals how much board members will be compensated for meeting 4-6 times a year:

We have hospice workers making less in one year than board members have in a charitable contribution match from Humana ($40,000).  Maybe Humana board members will send some contributions to these workers.  It's a nice thought that a few crumbs might fall from the king's table.  

TPG and WCAS made 260% profits from a three year investment, an 86.7% annual return.  KAH management's 1.6% stake amounted to a $96 million check from Humana.  It's a miserly group, not known for sharing.

Humana wants one more giant payday from spinning off our hospice.  It may need to act fast, before Senate testimony starts or market conditions change.

Anonymous

Lining Pockets of Kindred at Home Executives

Strange Tony,

Flashback to spring 2018 and one finds a major shareholder upset about the Humana takeover.

A major Kindred Healthcare (NYSE: KND) shareholder forcefully protested the company’s planned sale to Humana and private equity firms, arguing in a publicly released letter that the deal would hurt shareholders but line the pockets of Kindred’s directors and top executives.

It re-lined the pockets of Kindred at Home executives to the tune of $96 million when Humana purchased the rest of the company as announced Tuesday.  

As usual employees got a kick in the teeth while donating hours and mileage to the company.

Anonymous

Humana Gives Millions to KAH Executives

Strange Tony,

Humana Inc. (NYSE: HUM) announced the completion of its acquisition of Kindred at Home (KAH), the nation’s largest home health and hospice provider.

Phase one of the giant executive payday has occurred. Financial rapscallions turned $1 billion in equity into $5.7 billion, a 470% return in three years.

If Causby, Graham, Kane, Broussard and other accredited investors did as well, their average $2.4 million turned into $8.6 million, a profit of $6.6 million.  Executives gained yet another king's ransom while KAH employees got jack squat.  

Phase two if the giant executive payday is flipping Kindred Hospice for a multiple of up to 26x EBITDA. Hospice employees will yet again get jack squat.

Anonymous

Kindred at Home Hospice Division Part of Kentucky Homecare

Strange Tony,

Humana and its financial rapscallion partners used "Kentucky Homecare" to acquire Kindred at Home and Curo Health Services.  Humana and Kindred at Home executives had the opportunity to take their proceeds from the June 2018 buyout and invest in Kentucky Homecare shares.  

Kindred at Home executive David Causby and Curo Health founder Larry Graham were part of the initial 37 private accredited investors.  They likely have a larger stake than the average investor, nearly $2.5 million, in Kentucky Homecare's private placement.

Humana CEO Bruce Broussard expected to close buying the rest of Kindred at Home in mid-August, i.e. any day now.  AM Best indicated Humana would take Kindred/Curo Hospice public via an IPO.  

It remains to be seen what Humana actually does, but I am cheering for a public offering.  I've had enough of working for greedy financial rapscallions.  

Anonymous

Humana to Borrow $3 Billion to Buy and Flip Our Hospice

Strange Tony,

Humana will borrow $3 billion to buy the rest of Kindred at Home.  Humana CEO Bruce Broussard will write a $3.8 billion check to financial rapscallions WCAS and TPG Capital for their 60% of Kindred at Home.  That's orders of magnitude more than they paid Kindred shareholders for the company three years ago.  

Kindred at Home executives equity stake rose 212% in three years.  They will earn a king's ransom from decimating our hospice and treating employees like serfs.  Raises have been sparse to nonexistent under Humana ownership.

Humana CEO Bruse Broussard will enrich his former employers at WCAS yet again.  Broussard served at CEO for US Oncology, a WCAS affiliate.

Humana will spin off, i.e. sell yet again, our hospice shortly after closing the Kindred at Home transaction in mid-August.  Humana wants 23x EBDITA for us.  That will produce lots of cash for the board to share with Broussard.  

Recall Kindred CEO Paul Diaz received a $6 million check for closing the Gentiva deal.  Employees got nothing.  

How big will Bruce's check be?  My coworkers and I wait at the foot of his table for crumbs to fall.

Anonymous

Yet Another Sale Looms for Our Hospice

 

 

Strange Tony,

Our hospice will be sold yet again.  In the next month or two Humana will likely spin off our hospice.  They plan to buy the other 60% of Kindred at Home in the third quarter of 2021, then quickly flip our hospice to raise gross amounts of cash.  My fellow hospice employees will not see a penny of the proceeds.  

As for the raw deal employees have gotten from Gentiva, Kindred and Humana one can hear from Brandon Ballew, former executive.

I think caregivers have been marginalized in the past by other companies.

Ballew helped marginalize my peers with cuts to paid time off, eliminating overtime, deteriorating healthcare coverage, cutting the number of holidays and reducing the rate paid to employees working holidays.

Mr. Ballew was most recently chief operating officer of Kindred at Home. He spent 18 years with Kindred at Home.

Ballew left Kindred to head AccordCare, owned by financial rapscallion Coppermine Capital.  

I fear for the future of our once great hospice.  Humana made it a shell of its former self.  Implementing Curo Health technology, staffing and practices had the expected impact, obscene levels of staff turnover and a 50% reduction in census.  Our hospice's survival is at risk.

EBITDA and leverage are earthly pursuits of the greedy.  My coworkers are tired of the machinations undertaken to enrich Kindred Hospice executives, yet again.  There are no crumbs falling from their table.  Marginalized caregivers cannot give and give and give without nourishment. 

Anonymous

CURO Health Services Hit with False Claims Suit

Strange Tony,

The U.S. Department of Justice announced a case against Curo Health Services' Avalon Hospice for filing false claims with Medicare and Medicaid.  The suit states:

Since at least 2010, the defendants violated the False Claims Act and the Tennessee Medicaid False Claims Act by knowingly submitting or causing to be submitted false claims, and knowingly and improperly concealing or avoiding Avalon’s obligation to repay overpayments, for hospice services provided to patients who were ineligible for the Medicare or Medicaid hospice benefit because they were not terminally ill.

The complaint alleges that the defendants pressured staff at their Tennessee hospice agencies to maximize admissions and census through aggressive financial targets and incentives, while simultaneously discouraging the discharge of patients who were no longer eligible for the Medicare or Medicaid hospice benefit.  

 The DOJ press release occurred on June 1. 2021.  

This isn't Curo's first brush with the Department of Justice.  Curo Health's Hospice Plus paid a $12.2 million fine in 2017 for paying for referrals.

Greed and bad management practices frequently come with private equity ownership.  Curo CEO Larry Graham was put in charge of the hospice division  Larry Graham was in charge for behavior that resulted in both DOJ cases.

I expect more false claim cases against our hospice division given Kindred Hospice adopted Curo's entrepreneurial platform for hospice. That's what financial rapscallions and Humana ownership did for us, besides ruining the quality of care provided.

Anonymous

Humana to Ditch Hospice

Strange Tony,

Our hospice is being sold yet again.  Humana held its Investor Day and bragged on the return it may get.  Rest assured my coworkers have seen very little reward for the torment we've endured under Humana and two financial rapscallions.

The rug was pulled out from under long suffering employees who said, "Just wait until Humana buys the rest of us.  Things will get better."  No, they will not.

With every buyout the level of staff abuse increased.  Humana's abuse has been particularly cruel to both staff and the quality of hospice care delivered.

Home health will stay with Humana and be forced to grow fee-for-service business while saving Humana money on its various insurance products.   The Kindred name will disappear, replaced by Humana's payor agnostic CenterWell.  One could put the green Humana H in the middle of that and get CenterHell.  

That's likely the future of healthcare.

Anonymous

Deceased Hospice Staff Invisible to Management

Strange Tony,

Heartless management neglected the memorial service for our longtime social worker.  How would you like to work over twenty years for a company, make it the center of your life, stay positive in buyout after buyout and not have one manager show up and say a few words about your contributions?  That's exactly what this sorry company did.  Fortunately, many former co-workers attended and spoke words of appreciation.  

Humana and two financial rapscallions are behind Kindred Hospice's disconnected management.  We had over 100 patients in June 2018.  They cut and cut and cut staff.  As the number of employees decreased so did patient census.  It's now in the fifties. 

I don't believe our deceased social worker was aware that Humana intends to sell our hospice yet again.  Her condition deteriorated the evening of the announcement and she died the following day.  She's now in heaven where king's ransoms, like the ones sought by our executives, are not allowed.  

Anonymous  (heartbroken and sick of dehumanizing greed)

KAH Executives to Have King's Ransom Payday

Strange Tony,

Kindred Hospice executives will have riches beyond measure for dropping a neutron bomb on our hospice.  A neutron bomb wipes out life but leaves buildings standing.  With staff decimated they moved us to another building, smaller and cheaper.  

For selling on the cheap Kindred at Home management got an equity stake alongside Humana and two financial rapscallions in 2018.  The overall equity stake of all parties rose from $1.66 billion in 2018 to $5.2 billion in 2021.  

KAH executives will make 212% profit on their slice of the company.  Compare that to hard working hospice employee raises, mostly nonexistent, over the same three year period.  

Employees experienced 33% fewer holidays and a 50% cut in holiday pay so executives can have yet another king's ransom payday.

Humana will add to the injury by jettisoning the hospice division under the same person who sacrificed many of my hospice peers for his personal gain.  Greedership is a piss poor model of management, but it is what we continually endure.

Anonymous (being sold for the seventh time)

Kindred Hospice Employees Get Short Shrift

 

Strange Tony,

The pipe dream that Humana would be a more human employer evaporated for Kindred Hospice employees.  It vaporized when our 40% owners said they would buy the rest of Kindred at Home and spin off the hospice division under CEO David Causby.  

The reality is TPG Capital and WCAS, our 60% financial rapscallion owners, trusted Humana to operate KAH over the last three years.  While Humana matched employee retirement contributions up to 6% we received a paltry up to 1%.  Humana took away 33% of our paid holidays and cut holiday pay 50%.

Greed is the reason Humana will sell the hospice division.  It will buy the 60% it doesn't own for an 11x multiple of EBDITA.  Once done Humana will have paid an average of 9.6x EDBITA for all of Kindred at Home.  It can sell Kindred Hospice for up to a 26x multiple.

Humana can earn 167% on their investment for flipping the hospice division, enriching CEO David Causby beyond measure.  Employees know the raw deal imposed by Humana, TPG and WCAS and the abusive treatment from KAH executives.  Keeping us under David Causby is a very bad sign.

Anonymous

Humana to Flip Kindred Hospice like a Financial Rapscallion

Strange Tony,

Humana will do to Kindred Hospice what it chose not to do in 2018 with Kindred Healthcare's inpatient post-acute businesses.  It will buy the rest of Kindred Hospice for a multiple of 11.5 times EBDITA and then sell it for up to 26x EBDITA.  HospiceNews stated:

Multiples in the hospice and home care space reached a record 26x during 2020, according to a research report by PwC’s Health Research Institute. Hospice and home health merger and acquisition activity buoyed the larger health care services sector last year, which saw a decline in transactions largely due to the fallout from the COVID-19 pandemic. Overall health care sector multiples hovered near 13.9x, up slightly from 13.8x the prior year, according to PwC.

“We expect that we will be able to capitalize on a robust market for hospice assets by divesting a majority stake in that portion of the business for what we anticipate will be an attractive valuation,” Humana CFO Brian Kane said. 

Humana bought Kindred at Home alongside two financial rapscallions for an 8x EBDITA valuation.  Long time employees lost money on company stock in the buyout.  

How did Humana and Kindred at Home executives treat employees after the buyout?  They reduced headcount from 56.000 to 43,000.  They cut the number of holidays by 33% and holiday pay by 50%.   

Employee harming executives will profit handsomely from Humana's buying the rest of Kindred at Home.  It's not clear what multiple Kindred at Home CEO David Causby and Hospice President Larry Graham will sell their company shares.  EBDITA grew from roughly $400 million to nearly $640 million, a 60% increase.  On Indeed and Glassdoor Kindred at Home employees cited going years without raises. 

Humana CEO Bruce Broussard once ran US Oncology, an affiliate of Welsh, Carson, Anderson and Stowe.  He has bought and sold more than one WCAS owned company as Humana's chief executive.  Companies once integral to Humana's strategic direction are deemed disposable.  It happened to Concentra with physician clinics in 2015.  It will happen again with Kindred Hospice in 2021.  

It is probably for the best as CenterWell Hospice would be an extremely ill fitting name.  Head's up fellow hospice employees, there could be another round of layoffs before the spinoff.  It's what financial rapscallions do and Humana clearly is one.

Anonymous

Yet Another Leveraged Sale for Kindred Hospice

Strange Tony,

Our hospice will become part of a leveraged sale after Humana buys the rest of Kindred at Home from financial rapscallions TPG and WCAS.  Consider what the last leveraged buyout did to our company.  

Kindred at Home had 46,000 employees and Curo Health had 10,000 for a combined 56,000 when the deal closed summer 2018.  By February 2019 headcount shrank to 50,000.  It's now 43,000.  That's a reduction of 13,000 positions or 23%.

Management scores itself via a stacked financial measure, earnings before depreciation, interest, taxes and amortization (EBDITA).  Personnel is the largest expense.  Our hospice staffing was cut in half after Curo installed its crappy, expensive, time wasting technology.  Customer service scores plummeted, horrifying staff.  Management didn't care.  Financial measures mattered.  Patient care did not.

In addition management robbed employees of fair pay for hours worked by making nurses salaried, cut holidays 33% and reduced holiday pay, and only paid employees mileage for the outbound trip to the patients home.  Getting fair reimbursement for miles driven took too much time for busy hospice professionals trying to meet patient/family needs while understaffed.  Employees threw up their hands trying to get fair mileage pay.  The bottom line grew to the benefit of executives.

When the deal closed EBDITA was just over $400 million.  It's now $645 million, up almost 60%.  This is the measure producing the outrageous purchase price ($8.1 billion) and enriching already super wealthy executives.  Revenues remained stagnant, around $3 billion annually.

With every buyout, Gentiva, Kindred and Humana executives profited handsomely.  Employees got lip service and nothing else.  Humana and its financial rapscallion partners paid 6x EBDITA for Kindred at Home, then planned to transfer the rest at 10 to 11.5x EBDITA.  That's nearly a double for greedy financiers and KAH executives.  Job cuts and wage/benefit theft added even more to the final purchase price, of which executives get a piece. 

Our hospice does not need another leveraged buyout.  We need and deserve an employee owned company.  It is our blood, sweat and tears that kept the company operating on a daily basis.  Instead Humana CEO Bruce Broussard and CFO Brian Kane will sell our hospice yet again and keep us under CEO David Causby.   .  

Executives repeated proved they don't value employees.  This greedy group values their pocketbook.  A pox on their abodes.  They might value hospice if they have to get end of life care.

Anonymous

Humana to Buy Rest of KAH and Sell Hospice Division

Strange Tony,

Kindred Hospice employees hoping to receive Humana's much richer retirement benefit (6% vs 1% match) will be disappointed to know Humana's buyout of the rest of Kindred at Home includes dumping the hospice division.  

For the most senior of hospice employees this could be be their fifth, sixth or seventh buyout, Family Home Hospice, Vistacare, Odyssey, Gentiva, Kindred, Humana/WCAS/TPG and now the looming Humana spinoff.  Raises slowed when Gentiva took over and virtually stopped under Kindred and Humana.  Those hoping to be included in Humana's pay and benefit scales will remain under penny pinching CEO David Causby.

While KAH’s hospice and community care operations are included in the transaction, Humana intends to ultimately only maintain a minority interest in this portion of the asset. The company is exploring, among other things, a public listing (IPO), conditions permitting, or another potential transaction (sale), and intends for the future independent company to be led by David Causby, the current Chief Executive Officer of Kindred at Home.

Causby will make another king's ransom for making life difficult for hospice employees, adding mountains of work and never adjusting pay.  Causby is part of the executive team that partnered with Humana and financial rapscallions in Summer 2018.  His holding down employee wages flowed directly to his personal pocketbook.  The man does not need the money.  He received two $1 million retention bonuses under Kindred.  He also received a bonus for growing employee turnover.

How did Kindred at Home go from a $3.4 billion company to $8.1 billion?  It's not clear at all.  Kindred at Home/Curo Health had a combined $3.028 billion in revenue when the buyout occurred Summer 2018.  Moody's stated "fiscal year end December 31, 2020 revenues are approximately $3 billion."  That's better than Causby's performance in the Harden Healthcare deal where Harden's revenues evaporated, however it is minuscule revenue growth over two and a half years. That doesn't support a 140% increase in the value of KAH.

Humana will enrich rapscallions TPG, WCAS (Welsh Carson Anderson and Stowe) and Kindred at Home executives.  Kindred at Home's home health will be rebranded CenterWell Home Health.  That division fits into Humana's long term plans while hospice does not.  Kindred Hospice employees have long been abandoned.  Humana is just the latest to do so.

Anonymous