Strange Tony,
In searching for any information on the Senate Finance Committee's review of hospice company private equity ownership I ran across a report from the Private Equity Stakeholder Project.
Generic Hospice readers know my disdain for financial rapscallions, who along with Humana trashed our once great hospice (nationally recognized). However, I also value accuracy in reporting and I found a error in their report table.
July 2018 saw the take private split up of Kindred Healthcare. Humana, TPG Capital and Welsh, Carson, Anderson and Stowe (WCAS) bought out the home health, hospice and community care parts of Kindred, now known at Kindred at Home. TPG and WCAS took the hospital portions of Kindred Healthcare, long term acute care and rehabilitation hospitals, as well as outpatient rehab services.
Humana purchased the rest of Kindred at Home from its financial rapscallion partners in August 2021. WCAS and TPG monetized the post acute hospital division (Kindred Healthcare) to LifePoint in December 2021. These were distinctly different deals.
I looked for a way to submit this information so they could consider correcting their report but found no contact information.
Last year I wrote:
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%.
After buying the rest of Kindred at Home Humana increased its employment number by 40,000. That is why I submitted that number as a possible correction. I hope the U.S. Senate report is more accurate in this regard.
Anonymous
I did send the information to the PE Stakeholder Project's jobs e-mail. Hopefully it's not an HR bot and whoever received it cares about quality reporting.
ReplyDeleteAn article about the report can be seen at the link below:
ReplyDeletehttps://www.commondreams.org/news/2022/03/18/report-rings-alarm-over-private-equitys-grip-home-health-hospice-industries
Report Rings Alarm Over Private Equity's Grip on Home Health, Hospice Industries
ReplyDeleteThus, it should be accurate regarding Kindred at Home, the second largest hospice company in the U.S.
"Hospice News" did not know their sixth largest hospice company, Curo Health Services, is part of Kindred at Home and has been since summer 2018.
Financial rapscallions like to obscure the numbers available to the public. They know full well how much money they are making.
AM Best missed Humana's shopping Kindred Hospice to another set of financial rapscallions. They still refer to a pending IPO.
ReplyDelete"Financial leverage remains elevated at approximately 44%, as measured by AM Best, at year-end 2021 due to debt issuances in 2021 to finance the acquisition of Kindred at Home. On a long-term basis, Humana targets a more conservative debt-to-capital ratio of 35%. Humana announced plans to deleverage by divesting of Kindred at Home’s hospice and person care services business via an initial public offering (IPO) after close of the transaction, which was completed in August 2021. This has not occurred to date and absent the IPO, financial leverage will decline only through equity growth or retirement of debt."
https://finance.yahoo.com/news/am-best-assigns-issue-credit-145700689.html
WCAS and Humana both get mention in this piece about the near- and mid-term goal to keep hoovering up more of that sweet sweet Medicare money
ReplyDeletehttps://www.levernews.com/seniors-medicare-benefits-are-being-privatized-without-consent/
WCAS has former Medicare Chief Tom Scully as General Partner:
ReplyDeletehttps://www.wcas.com/firm/team/thomas-a-scully
No correction from PE Stakeholder Project as of 9-2-22. Kindred at Home Hospice is now owned by Clayton, Dubilier and Rice.
ReplyDelete