Saturday, November 16, 2019

Humana CEO on Kindred at Home Q3 Earnings Call



Strange Tony,

Do you have any insights for me on what this guy is saying?  Humana CEO Bruce Broussard highlighted Kindred at Home in an Q3 earnings call on 11-17-19:

At the core of our strategy is interoperability, which facilitates our relationship with our provider partners, while simplifying the experience of our members. Recently Humana Pharmacy developed what we believe is the first clinical decision support fire integration in production between a payer and a provider via their clinical workflow. Our partner Signifyd Health is now using our OneMedList in connection with an in-home assessments, giving them the ability to confirm in real time member adherence to their medication and more proactively identify potential adverse drug interventions and drug disease conflicts.

During 2020 we will roll this same functionality to all Kindred at Home and other health care – health home health providers including integration with the new home care – home based system. The integration of technology like OneMedList with Kindred at Home is enabled by Humana's integration with the home care, home-based electronic medical record and practice management system. The integration allows the prescription drug information gathered by the Kindred at Home nurse to become part of the Humana record, ensuring a more comprehensive record and reducing the likelihood of medication errors.

This will accelerate our ability to proactively identify key clinical interventions while improving revenue capture and business and quality reporting.
The Kindred Hospice nurse has to re-enter the complete med list with every re-certification in Homecare Homebase.  As they are salaried and work 50-60 hour weeks the accuracy of the manually re-entered medlist may not be 100%.  That will be uploaded to Humana, who will begin to see the garbage in-garbage out nature of HCHB.  You can't have real time adherence to a medication the patient is no longer taking but remains in the system as a current medication.
 
...when we went into the Kindred investment, we went into it with the view that there would be reimbursement changes in there and those reimbursement changes would not only be rate impacted, but also just the way the business was going to the drivers of the business. And we are very excited about the changes of the reimbursement model, moving to a model that is going to reward more for nursing and reward more for chronic conditions as opposed to just therapy and be more oriented to less chronic conditions. 

So first just the structural changes there we find are very helpful for our member base and then advancing the downstream costs, such as admissions and readmissions in addition complications of particular conditions in total. The second thing is when we constructed the deal and did our forecast, we constructed the deal with knowing that there would be a transition both – that would require operational transition, and in addition, require us from a financial point of view. And so, when we did the deal on it and based on our valuations, we also assumed this particular transition there.
That is one of the reasons why you saw the organization invest in technology in 2019 to be able to prepare for these changes. And I think, if you were sitting in the board room of Kindred, you would also see a number of other changes both from competencies, clinical programs and so on and preparing for it. So I think – the both Kindred and Humana are very active in that evolution.
The third thing is on the just the financial side and I would say that it is incorporated in our outlook for 2020 and the years beyond that. But I do also want to highlight that in, when we were to exercise the put or call it is on the operating performance post that reimbursement change. So it does reflect in the other 60% that we purchased on. So, in summary, we're very excited about the changes as it structurally changes the economics to take on the conditions that we feel are most important for our members.
Secondarily, we have incorporated that in the transaction, both in the operating results that we see over the coming years. But then most importantly, as our – as we move to exercise in the put or call is, it will be reflected in the purchase price accordingly.
Humana will enrich Kindred at Home executives and two financial rapscallions when it buys the 60% of the company it does not own for a 10.5 to 11.5 multiple of EBITDA.  Kindred shareholders got a mere 8x multiple from Humana.

Broussard did not mention how Humana and the Kindred board keep ruining our once nationally recognized hospice.  Curo technology is a Trojan Horse.  Employees are under constant surveillance.  That's devolving.

Anonymous

3 comments:

  1. Anonymous,

    I have no clue as to Broussard's message. It sounds like the strategy is money. That bodes poorly for patients and employees. Retirement remains highly enjoyable. You should consider it. Look for God's hand in all matters. Trust in him, not leaders pursuing the transitory.

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  2. Not one inspiring word from Humana's Broussard for a dedicated hospice professional. Humana/Curo completely trashed our hospice in less than a year.

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  3. Business analytics will help Humana deal with the opioid crisis.

    "The analytics case received by the students was designed to be multi-faceted and complex, similar to a real-world business problem. This year’s competition focused on chronic pain and the treatment of this condition through long-term opioid therapy, which has increased dramatically over the past two decades. According to the Centers for Disease Control and Prevention, as many as 1 in 4 patients receiving long-term opioid therapy in a primary care setting will struggle with opioid disorder. Using de-identified data, the students were asked to predict long-term opioid therapy post initial treatment. The goal is to identify patients at risk for continued long-term use of opioid therapies allowing for early intervention."

    "The teams were judged based on the following criteria:

    Ability to establish key performance indicators aligned to business needs
    Quantitative analysis identifying key business insights
    Ability to provide unique insights for business improvements
    Professionalism and visualization skills

    "I am pleased that the students’ analyses will help Humana shape the way the industry delivers healthcare to alleviate the opioid epidemic."

    Business needs, business insights and business improvements. Clinical expertise is nowhere to be seen.

    https://finance.yahoo.com/news/correcting-replacing-university-california-los-162500848.html

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