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
"delivering value in the shift to value based care" is Weaselspeak for "I'll race you to the bottom!"
ReplyDeleteThe corporate level cares little about the staff and will not hesitate to lay you off if the profit margin shifts for a quarter. They call you back to try to rehire you (saving on training a new person). Ridiculous. Job security is non existent even for top level branch management.
ReplyDeletehttps://www.moodys.com/research/Moodys-says-Charlotte-Buyers-term-loan-add-on-to-partially-finance-Announcement--PR_480776
ReplyDeleteMoody's did not change the debt rating for Charlotte Buyer (Gentiva Hospice) after the Promedica buyout. It remains a highly leveraged company and vulnerable to financial shocks.