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