Tuesday, December 12, 2023

Gentiva Targets Palliative Care


Strange Tony,

Gentiva CEO David Causby is targeting palliative care for service expansion.  He plans to take a low volume, loss leader program and turn it into 10,000 palliative care patients through a focused effort.  It would have to include increasing reimbursement for palliative care for that strategy to make sense.

Aveanna Healthcare took a similar approach to pediatric home services for medically complex patients.  Former CEO Tony Strange, a former boss of David Causby's, lobbied state legislatures for increased reimbursement for that service.  Aveanna's current CEO Jeff Shaner was a peer of Causby's, or should I say rival?

The U.S. Senate set up a committee to explore the impact of private equity ownership on healthcare.  Aveanna had Bain Capital as a sponsor.  Bain remains the majority shareholder for Aveanna.  Shaner may have his work cut out for him in refinancing Aveanna's billions in debt.

Gentiva is majority owned by Clayton, Dubilier and Rice and had two other financial rapscallion owners in TPG and Welsh, Carson, Anderson and Stowe.  

Senators asked Gentiva for information in 2021 but nothing has come from that inquiry to date.  WCAS, TPG and Humana already decimated our once nationally ranked hospice by 2021.  It has only gotten worse.  Regulators may finally pay attention to the damage done by financial rapscallions.

Aveanna was rated a "sell" and given a $1.50 price target by UBS.  Their report cited the company's high leverage.  I imagine Gentiva is in a similar position.  

Causby's goal is to increase the value of his equity holdings by several orders of magnitude.  I've seen the harm his greed caused at the local hospice level.  He and his financial rapscallion sponsors remain unchecked and for that we suffer.  

Anonymous


Wednesday, November 15, 2023

Healthcare's Neverending "More with Less" Takes Supreme Toll


Strange Tony,

I read the saddest story of a nurse taking her life and the note she'd written months before she committed suicide.  Tristin Kate Smith, a 28 year old emergency room nurse in Ohio, wrote:

"Each day, you ask me to do more with less." 

Smith’s letter also referenced that many nurses feel that hospital administrators are taking advantage of them.

"You are a narcissist," she wrote. "You use and exploit us to line your pockets, using the common citizen’s money for overpriced health care."

Substitute Regional Vice Presidents for hospital administrators and this could well be our hospice over the last decade.

Ten years ago our hospice was a public company and employees could buy stock, could actually own a stake.  That changed with buyout after buyout, the last two by financial rapscallions (the narcissists cited above).

Our nurses have been used and exploited to line their pockets.  As have other staff.  That much is crystal clear.  

Day after day Gentiva/Kindred/Gentiva robbed staff of fair pay for hours worked and reasonable reimbursement for miles driven.  Year after year the company prioritized profits over patient care and humane treatment of employees.  Human Resources turned strategic and became the Human Abuse Department.  Compliance pretends to care but raising concerns usually boomerangs into increased levels of abuse, often coached by HR.

I hope any nurse or healthcare worker in a dark place finds support.  I encourage healthcare workers to be attentive to anyone struggling.  Listening is an important first step.

I am grateful to the many coworkers who listened when challenges arose.   None were managers.

Anonymous

Monday, November 6, 2023

License to FRoperate

Strange Tony,

Gentiva's press release on its closing the buyout of Promedica's hospice and home health operations had a strange name at the bottom.  Contact information was not for a Gentiva PR person but H/Advisors Abernathy.

At first I thought it might be another affiliate of Clayton, Dubilier and Rice given financial rapscallion's propensity to cross sell across their corporate holdings.  Then I found H/Advisors Abernathy had been helping private equity for 40 years.  No financial rapscallion holds onto an asset that long.

H/Advisors Abernathy "thinks like private equity", helps with add-on acquisitions can reach stakeholders who can impact private equity firms' license to operate, i.e. throw off huge amounts of cash to sponsors while shafting employees.

H/Advisors announced a new healthcare public policy influence effort (lobbying), bought Tinkle in Spain (our hospice physicians make us say urinate), and opened their first office in the Middle East (Dubai).  

Oddly the press release on the Gentiva Promedica purchase made no mention of CDR or the $500 million in added debt that will increase interest expense.  My bowels can feel more cost reduction efforts on the way.

H/Advisors knows financial rapscallions like to stay hidden from public view and they clearly did their job.  The CDR team appreciates it.

Anonymous

Friday, November 3, 2023

Gentiva Closes on Promedica Hospices


Strange Tony,

Gentiva announced it closed on Promedica's hospices giving CEO David Causby another shot at managing an integration.  Moody's said the "$500 million first lien term loan add-on will not impact the company's ratings or outlook."

Proceeds from the term loan add-on, along with new equity from the private equity sponsor, will be used to fund the acquisition of Heartland from ProMedica.  

Clayton, Dubilier and Rice did not issue a press release on the deal, however Gentiva did.  Just as Kindred Hospice dug into its name history to produce Gentiva, Causby is going retro with Promedica's hospices.

Most of ProMedica’s hospice locations will rebrand to the Heartland Hospice brand by the end of 2023. Home Health locations will rebrand to Heartland Home Health in early 2024.

Causby butchered the Harden Hospice integration while COO at Gentiva (under CEO Tony Strange).  He eviscerated any goodwill by putting Harden's hospices with their mish-mash of brand names into Gentiva's.  Our hospice took on a number of Harden patients, got a temporary bump and then it was business as usual.  Causby's integration lost over $100 million in expected combined revenue.

Our hospice remains highly leveraged.  That means stiffing workers on pay, benefits and mileage reimbursement.  The pressure to admit patients on the edge of qualifying for hospice care is ever present but will ramp up.   

Our financial rapscallion owners addressed "delivering value in the shift to value based care" in a keynote interview.  Gentiva board member Ravi  Sachdev participated in the interview but made no mention of Gentiva.  Neither did the other two CDR executives.  

Welcome to the Promedica folks.  Hope you guys last.

Anonymous

 

Wednesday, November 1, 2023

The CDR Players at Our Hospice


Strange Tony,

Our hospice waits for government approval of Gentiva's planned buyout of Heartland Hospice.  Once approval is given the deal will close and integration will begin.  Our majority owners for the last fourteen months are financial rapscallions, Clayton, Dubilier and Rice (CDR).  

CDR expected the Heartland acquisition to close in the second quarter.  It's now the fourth quarter and the deal has a mid December complete by date.  Should it go through here are the CDR staffers who will shape the combined companies:

I don't expect anything good to come out of New York, especially from a financial rapscallion.  I think these people have a game plan and it involves harvesting cash from our hospice team's hard work.

These people hate to share.  Not very hospice like, is it?   Taker's owning a company full of givers, it's the financial rapscallion way.

Anonymous

Monday, October 23, 2023

HBO's John Oliver Torches McKinsey

Strange Tony,

Comedian John Oliver blasted McKinsey and Co., a giant consulting firm in a darkly comedic piece.  It's well worth the watch. 

McKinsey featured Kindred Healthcare on a podcast two weeks before CEO Ben Breier sold us down the river to financial rapscallions TPG and Welsh, Carson, Anderson and Stowe.

 

In January 2022 McKinsey mentioned Kindred at Home again in a Medicare segment, when Humana briefly owned 100% of the company. 

It's not clear how many podcasts McKinsey does for non-clients, but our hospice owner made two of them.

John Oliver summed up our experience under financial rapscallion and Humana ownership.


Job loss and wage theft at the hospice level, major financial gains at the top.  Thanks McKinsey....

Anonymous

Tuesday, August 22, 2023

Gentiva May Soon Close on ProMedica Hospices


Strange Tony,

The Toledo Blade reported on the delayed closing of Gentiva's purchase of ProMedica's hospice division due to antitrust concerns in certain markets.

The article said ProMedica's pushed back a debt repayment by several weeks as a result of the delay.  That means the closing could be imminent.

Anonymous

Tuesday, June 13, 2023

Promedica's Hospices to Merge into Curo


Strange Tony,

An anonymous commenter alerted me to this find:

On behalf of ProMedica Skilled Nursing and Rehabilitation and its affiliated hospice entity, In Home Health, LLC d/b/a ProMedica Hospice (Raleigh) as set forth in Attachment A (the “Licensed Hospice Agency”), this correspondence is to notify the North Carolina Division of Health Service Regulation, Healthcare Planning and Certificate of Need Section of its intent to transfer the operations of the Licensed Hospice Agency to Curo Health Services, LLC (the “Proposed Transaction”). The closing of the Proposed Transaction is scheduled to occur on or about June 1, 2023.
It is June 13th and the deal is yet to close.  The filing with the North Carolina Division of Health Service Regulation occurred five days prior to the deal's announcement.


The document also showed an organizational chart reflecting ownership after the deal is completed.  It has all the unfamiliar names identified previously by Generic Hospice, Falcon Hospice, Charlotte Buyer, Kentucky Homecare as well as the more familiar Gentiva, KAH Hospice and Curo Health Services.  The chart indicates Clayton Dubilier and Rice own 60% through Falcon Holdings L. P. (Cayman) and Humana 40% of various entities, including Curo Health Services.

This ample evidence should enable the Center for Economic and Policy Research to correct their report.  We'll see if that happens.

Moody's reported the deal has a December 31, 2023 closing date to make plenty of room for Federal Trade Commission approval but parties expect a closing much sooner than that date.

The next big things are the FTC's decision on the buyout and the new Charlotte Buyer rating from Moody's.  Can't wait.

Anonymous

Saturday, June 10, 2023

CEPR Claims Curo Wasn't Sold to CDR


Strange Tony,

The Center for Economic Policy and Research issued a report "Preying on the Dying:  Private Equity Gets Rich in Hospice Care."  I am grateful for their report as it highlights many concerns shared on Generic Hospice.

They detail the history I lived as part of a Kindred/Kindred at Home/Gentiva hospice team.  Their report states:

Curo was not part of this divestiture to CD&R but was also rebranded under Gentiva while remaining under the majority ownership of Humana.

I have found no evidence to support this assertion.  If Humana kept majority ownership of Curo the company would be shown on their list of subsidiaries filed with the SEC.  It is not.  

Humana declared a number of Curo and Gentiva subsidiaries after buying out financial rapscallions TPG and WCAS.  Those subs disappeared from Humana's list after they did the deal with rapscallion Clayton, Dubilier and Rice.

I wrote CEPR with this concern but have yet to hear anything back.  If they have a better source indicating current Curo ownership I'd love to see it.

Humana adopted the Curo operating model when they snatched Kindred at Home from Kindred Healthcare.  The PE Stakeholder Project confused this history in their report.  I submitted a correction to them as well but have seen no change in their report.

Curo has a special place in my emotional store of unfair treatment.  Executives gave us their bad systems, miserly staffing model and abject indifference to unique items that made our hospice care special.   Mooresville, North Carolina became the place we dealt with for HR issues and spent hours on hold multiple times a week trying to get help from IT.

I wish Humana separated us from Curo a long time ago, but that never happened.  I want CEPR to have their facts right so their report can have more impact.  Even in the murky world of financial rapscallions facts can eventually become clear.

Anonymous

Sunday, May 14, 2023

Regulatory Approvals Needed for Gentiva's Promedica Purchase


Strange Tony,

Debt rating agency Fitch downgraded ProMedica in its latest review.  The debt went from BB+ to BB- due to a significant decline in liquidity (readily available funds).  A news report offered:

...the negative watch reflects the "uncertainty" regarding the $710 million sale of its hospice and home healthcare business to Gentiva since the sale has not received all the necessary approvals yet from regulators. According to Fitch, ProMedica plans to use money from the sale to pay down roughly $452 million of certain debts.

Moody's is yet to update its review of Gentiva debt listed under "Charlotte Buyer."  I don't expect changes until regulators give their stamp of approval.

In November 2022 Moody's downgraded another home health and hospice provider Aveanna Healthcare.  Aveanna's executive team came from Gentiva after Kindred Healthcare purchased the company.  Former Gentiva executives partnered with financial rapscallion Bain Capital.  

Aveanna released its first quarter 2023 results.  The home health and hospice division experienced a 15.8% decrease in revenue in the first quarter of 2023 relative to 2022.  Aveanna is pursuing "additional direct and indirect cost initiatives" while growing admissions.  Executives are committed to growing hospice margins in 2023.  They expect positive cash flows for the last six months of the year from "top line and cost management" initiatives.  No Wall Street analyst asked about home health/hospice during the earnings call.

None asked about the evils of financial rapscallion hospice ownership and Aveanna executives avoided the topic as well.  Their greed and pillaging will continue.

Anonymous

Tuesday, May 2, 2023

World Waking Up to Damage Done by Financial Rapscallions


Strange Tony,

People are waking up to the damage done by financial rapscallions regarding hospice ownership.

The Center for Economic Policy and Research published a report titled "Preying on the Dying:  Private Equity Gets Rich in Hospice Care."

The American Prospect ran a story "Born to Die" about unethical and illegal hospice practices employed by hospice operators, many owned by financial rapscallions.

Two books on the subject of private equity plundering have or will hit the store shelves.  One is by Gretchen Morgenson and the other by Brendan Ballou.

NPR's Fresh Air interviewed Morgenson on how financial rapscallions increase the income gap.  Economics and Beyond interviewed Ballou about the harm private equity firms do in the U.S.

An article in the New York Times tackles private equity's gutting of America.  It warms my hospice heart to see people waking up.  They say it happens slowly and then all at once.  

Generic Hospice started as an outlet for executive shenanigans inside Gentiva.  It expanded to financial rapscallions once they became our majority owner in June 2018.  It's been a long five years.  

I hope all this attention results in real change, i.e. reigning in bad actor hospice owners.  That's my prayer regarding hospice predators.

Anonymous

Friday, April 28, 2023

Humana Rings Register on Hospice Holdings


Strange Tony,

My hospice co-workers learned that our sacrifices of worse health insurance, fewer days off and lesser holiday pay went to enrich Humana by over $1.3 billion, according to their 2022 10-K SEC filing.

Humana reported a $237 million gain on the sale of 60% of KAH Hospice (since renamed Gentiva Hospice) to Clayton, Dubilier and Rice.  Humana recognized a $1.1 billion gain on its original 40% stake when it purchased the rest of the company from TPG Capital and Welsh, Carson, Anderson and Stowe.  

Our hospice team can feel proud that our personal and financial sacrifices helped enrich highly paid Humana executives.   

Humana bought $280 million in KAH Hospice debt as well (debt issued under the corporate name Charlotte Buyer).  Should CDR run KAH Hospice (Gentiva) into the ground Humana could be at the bankruptcy table as a creditor.  

So far there is no financing information available on Gentiva's purchase of most of ProMedica's hospice division for over $700 million.  ProMedica is keeping hospices in Ohio and Michigan.

Humana made over $1.3 billion on the backs of hospice workers with more profit in sight.  It's a further sign of the greed that has overtaken hospice in our country.  

Anonymous

Friday, March 31, 2023

The Weight of Another Buyout

Strange Tony,

What would you think if a former Medicare Chief was in the lineage of both sides of the Gentiva Hospice - Heartland Hospice deal?  One has to go back to 2009 when Gail Wilensky, Ph.D. was on the board of directors of both Gentiva and ManorCare, a former parent corporation for Heartland Hospice.

Gentiva is buying Heartland for $710 million from Promedica Senior Care (formerly HCR ManorCare).  The Carlyle Group bought ManorCare.  It later ran ManorCare into the ground.

Gentiva had its own history of buyouts and corporate combinations, Family Home, VistaCare, Odyssey, Gentiva Health Services, Kindred Healthcare, Kindred at Home and back to Gentiva.  The company has been majority owned by financial rapscallions since 2018.  

Let's hope current owners Clayton, Dubilier and Rice don't crash us like Carlyle did to ManorCare.   My fellow hospice workers are dinged up from all the cuts on the people side of hospice delivery.  One wheel is off and several more are wobbling mightily.

I wonder how much additional debt Gentiva will take on to buyout Heartland.  How much higher will interest expenses rise and where will CDR look to cut to pay for those increased financing costs?  The pinheads in Atlanta won't tell us.  Maybe Moody's will in their Charlotte Buyer rating update.  

Anonymous

Monday, March 27, 2023

Hospice Clearly Lost its Way

Strange Tony,

Ira Byock, M.D. is on record that hospice needs to be blown up and started over.  When asked about regulatory solutions in a recent panel he referred to statements issued by several professional hospice associations.  Dr. Byock said the industry knew enough in 2008 to issue those guidelines.

On the panel was the Chief Medical Officer of Vitas Hospice Joseph Shega, M.D.. A Vitas piece on his promotion states:

He joined VITAS in 2013 as a regional medical director and was promoted to senior vice president and national medical director in 2016.

Vitas is owned by Chemed which is publicly traded on the NYSE.  In October 2017 Vitas settled with the Justice Department for $75 million for fraudulent billing.

The settlement resolves allegations that between 2002 and 2013 Vitas knowingly submitted or caused to be submitted false claims to Medicare for services to hospice patients who were not terminally ill.

The settlement also resolves allegations that between 2002 and 2013, Vitas knowingly submitted or caused to be submitted false claims to Medicare for continuous home care services that were not necessary, not actually provided, or not performed in accordance with Medicare requirements.

According to the complaint, the defendants set goals for the number of continuous home care days billed to Medicare and used aggressive marketing tactics and pressured staff to increase the volume of continuous home care claims, without regard to whether the patients actually required this level of crisis care. 

The interview did not mention this settlement.

 Dr. W. Edwards Deming rued the negative impact on quality arising from temporary corporate ownership with the express purpose of garnering huge returns from flipping the company.  He referred to this emerging phenomena in his Seven Deadly Diseases.

The world's quality guru, Dr. W. Edwards Deming, spoke in 1984 about an economy without takeovers, without leveraged buyouts (LBO firms).  LBO morphed into private equity before exploding the last two decades.  Greed is their constancy of purpose.

Dr. Byock noted that the hospice industry gets a bad rap for patients that get better under our care.  Our hospice got many patients better under the expert care of our founding Medical Director.  As soon as they no longer met hospice criteria he discharged them.  

Corporate structures changed that.  Our Hospice and Palliative Medicine board certified doctor had to submit a request to remove a patient from hospice care that often took weeks for the Regional Medical Director to process.  I heard our Regional Medical Director tell our IDG Team that those patients were good for six months and only needed to be discharged at the next recertification.  Our Medical Director disagreed but had no power to change corporate policy. 

Our founding Medical Director knew good managers appreciated staff.  He was repeatedly disturbed by the myriad of cuts imposed by new owners, the last two have been majority private equity.  Owners cut paid time off, reduced the number of holidays and cut holiday pay 33%.  I watched financial rapscallions institute new software that robbed employees of pay for time worked and mileage driven in the provision of care. 

Dr. Byock may want private equity owned hospices to increase their margin but he needs to look and see on whose back that occurs. 

Our founding Medical Director enjoyed telling the story of the corporate office having a special dark room, not much bigger than a closet, where they take a new manager and suck out half their brain.  I very much enjoyed watching the faces of those he told.  It generally took a few minutes for it sink in.

Thank you to Death Nurse for making me aware of the panel interview and sharing their wisdom in this arena.  "Game over" for hospice is due to the infiltration of financial rapscallions in the very fiber of American politics.  When private equity billionaires make government policy, they can do what they want.

Anonymous

Wednesday, March 15, 2023

Gentiva Deal for Promedica to Close in Q2

Strange Tony,

Gentiva's purchase of ProMedica's Heartland Hospce/Homecare will close in Q2 2023.  Goldman Sachs committed financing for the deal while six other investment banks advised Clayton, Dubilier and Rice (60% owner) and Humana (40% owner).  

Original financing for CDR's stake in Gentiva went through Charlotte Buyer.  Moody's is yet to issue an update to their rating given the deal terms.

This shows how disconnected hospice has become from its founding principles.  It's now an executive and financial rapscallion moneymaker.  Sad, even tragic for those our hospice serves..

Anonymous

Thursday, March 2, 2023

Gentiva Scarfing Up Heartland Hospice


Strange Tony,

Gentiva Hospice will buy Promedica's Heartland Hospice/Home Care in a $710 million deal.  Gentiva is buying 120 hospice locations serving 9,000 hospice patients with 4,000 employees.  

“This transaction is an exciting development for patients and their families that will enable us to extend our best-in-class caregiver recruitment and retention programs and provide high-quality care to more patients in more areas throughout the country,” Causby said in a press release. “Heartland is a high-quality hospice and home care provider that shares our values on compliance and putting patients first, and my colleagues and I look forward to growing our number of caregivers so we can expand access to the highest-quality care for more seniors.”

Gentiva CEO David Causby is familiar with merging hospice organizations.  Then COO Causby botched the integration of Harden's hospices into Gentiva. 

Our hospice never heard from Causby, not as COO, CEO or CEO/financial rapscallion partner.  He's consistently shown "profit matters" most.  When talented, dedicated hospice nurses raised quality of care issues they were shown the door.

"Senior Housing News" report on the buyout stated:

Although Gentiva couldn’t share a precise breakdown for the number of assisted living residents it caters to....

More like wouldn't.  Homecare Homebase tracks patient location and is able to differentiate between various types of senior living.  

Moody's rates Gentiva's (Charlotte Buyer) debt and is yet to mention any impact of deal financing.  There are two equity partners, CDR (60%) and Humana (40%).  The announcement indicated additional debt will be incurred.

Goldman Sachs Bank USA is providing financing to Gentiva. Deutsche Bank Securities Inc., UBS Investment Bank, BNP Paribas Securities Corp., Citizens Bank, N.A., Truist Securities and Wells Fargo are serving as financial advisors and providing financing.

Heartland Hospice was once part of ManorCare.  The Carlyle Group, another financial rapscallion, drove ManorCare into bankruptcy.  Promedica purchased ManorCare's remains in 2018.  Both companies were based in Toledo, Ohio.

There is a history of financial rapscallions bleeding both Gentiva and Heartland.  Spin is as spin does.  That's not the heart of hospice.   It is the corporate executive/financial rapscallion way.  Our hospice has felt their greed over and over and over.

Anonymous