My hospice co-workers believe our upcoming buyout will bring no changes. They believe the latest missive from executives that answered micro questions about paychecks and PTO, avoiding the financial elephant in the room, the addition of massive debt.
Both Gentiva/Kindred at Home and Curo Health have leverage of at least 6 times EBITDA according to Moody's. Our new owners will borrow over $3 billion to complete the two deals. Moody's rated the new debt less than investment grade. Their rating "reflects the company's very high debt/EBITDA following the leveraged buyout transaction and acquisition of Curo."
What kind of executives cite high leverage as the need to sellout then up the level of debt at least an order of magnitude? Kindred at Home/Gentiva leaders did just that by inviting more moneychangers to set up in the temple. They did so in a rising interest rate environment, meaning additional debt will be more expensive.
"Three dark personalities, narcissism, Machiavellianism, and psychopathy have been studied in businesses. Although the first two share similar traits with psychopathy, such as superficial charm, lying and manipulation, the inability to accept responsibility for their actions, and the complete lack of empathy, guilt and humility, a large body of research has demonstrated that psychopathic individuals are more dishonest, treacherous and destructive than the others.'
'While all three dark personalities can be bad news for a company, corporate psychopathy is the most dangerous. Nevertheless, because they use hard/deceitful manipulation tactics, are perceived as more dominant, and use overt means to appear more 'attractive' to those they wish to manipulate, psychopathic individuals may have the upper hand when it comes time to identify and select the most likely to succeed candidate for employee selection and promotion."-- Cynthia Mathieu, The Devil Lurks In the Suit
"Psychopathy is a personality disorder characterized by twenty well-documented traits and characteristics. The most visible are glib/superficial charm, a grandiose sense of self worth, a strong need for stimulation (that is, psychopaths are easily bored) and impulsivity.'
'However, there are others, which they successfully hide from view, in particular pathological lying, conning, manipulation, a lack of empathy, remorse and guilt. Over time, one might begin to see examples of irresponsibility, lack of realistic, long-term goals, and their failure to take responsibility for their own actions."-- Paul Babiak, co-author with Robert Hare of Snakes In Suits
Massive changes are coming, even as health insurance, PTO and mileage reimbursement remain the same. Staffing is Kindred's biggest expense and executives count on integrating Curo in a way that saves big money and preserves revenues. That did not happen when Gentiva integrated Harden's hospice division. Revenue disappeared from poor management decisions that reduced the quality of patient care.
Greed is in the air and my co-workers think all is well. Lord help and protect them.
Anonymous
Three traits dear to the heart of our current POTUS and the usual suspect played out in corporate tyranny. P.T. Barnum's old adage is as current as ever. Y'all going to be screwed. How much have you seen from the corporate tax break, (guess that went toward stock buybacks). I feel for you all. Thank God I'm out of that place. It seems like a fading memory of incarceration.
ReplyDeleteI am out too and looking back Thank God I decided to leave before Judas betrayed us further.
ReplyDeleteMy co-workers learned management's "no changes" promise was as hollow as our executive's hearts. There are far fewer of us.
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