Strange Tony,
My coworkers await Humana's sale of our hospice. Reports call for an independent public offering (IPO) that was expected to occur in close proximity to Humana's purchase of the 60% of Kindred at Home owned by financial rapscallions.
One can look at the IPO of Aveanna Healthcare as a proxy for our hospice spinoff. Aveanna has former Gentiva executives on board, Executive Chairman Rod Windley, CEO Tony Strange and COO Jeff Shaner. Financial rapscallions Bain Capital and J.H. Whitney hoped to IPO Aveanna at $18 per share. It went public on April 29th at $12 per share. It currently trades around $9.
Financial rapscallions add huge amounts of debt when they buy healthcare companies, resulting in big increases in annual interest expense. They also impose deal and management fees on affiliates. Aveanna paid Bain an advisory fee of $400,000 in September 2020. That was on top of the annual management fee paid to sponsors of $808,000 per year.
Tony Strange holds over 1 million Aveanna shares with millions more in options at $4,88 per share. Kindred Hospice executives David Causby and Larry Graham likely made huge profits from Humana's purchase of Kindred at Home. Causby will likely roll over his massive profits into our hospice spinoff. I expect Larry Graham to slither off to another early stage company owned by a financial rapscallion. It's his nature.
Causby will remain so he can continue optimizing the company to his personal benefit. Employees can expect jack squat. That's what greedy senior leaders consistently delivered to workers.
Anonymous
this could be interesting
ReplyDeletehttps://www.finance.senate.gov/chairmans-news/wyden-brown-warren-probe-private-equity-ownership-of-kindred-at-home
I'll be surprised if David Causby replies to their letter. Humana was the operating partner of the ownership consortium. The Senators should have included communications from Humana executives in their request.
ReplyDeleteI would've appreciated such an examination prior to Kindred's sellout of our hospice in summer 2018. There are plenty of private equity examples in healthcare, HCA, HCR ManorCare, LifeCare Hospitals, LifePoint Healthcare, etc.
Kindred Hospice includes Curo Health Services, which has been owned by numerous private equity firms since 2012.
August 3rd was far too late to help myself and my hospice coworkers. We are 100% owned by Humana and await their move to sell us yet again to put billions in their pocketbook.
https://generichospice.blogspot.com/2021/08/senate-too-late-to-explore-kindred-at.html
thanks for the details where the devil lives
Deletefollowing this: https://prospect.org/infrastructure/building-back-america/private-equitys-potential-payday-from-build-back-better/
Financial rapscallions are high in both political parties. Biden's top two cabinet secretaries. State and Defense Departments, worked for Pine Island Capital. The Carlyle Group located in Washington, D.C to access the federal wallet. Catering to the greed and leverage boys is a bipartisan activity.
DeleteCuro's former parent Thomas H. Lee Partners bought Care Hospice (60 locations) last October.
DeleteThe story mentions other hospices and their financial rapscallion owners.
https://www.pehub.com/thomas-h-lee-inks-deal-for-martis-backed-care-hospice/
Causby will reply to the Senators letter but won't provide all the information they requested. Wyden and company missed the boat by not including Humana e-mails and minutes in item 7b. Humana was the operating partner, not TPG or WCAS.
ReplyDeleteFinancial rapscallions bleeding healthcare companies for huge profits is nothing new.
ReplyDelete"2021 has thus far been dominated by digital health-focused transactions, SPACs and PE investment. We don’t expect these trends to slow any time soon, and we anticipate deal volume overall to hold steady for the year."
https://www.jdsupra.com/legalnews/healthcare-transactions-q2-2021-9849212/
Aveanna cuts its anticipated IPO price several times before going public and under-performing.
ReplyDeletehttps://www.iposcoop.com/ipo/aveanna-healthcare-holdings-inc/
Humana Utilization Management RN characterized company as "Devil behind a computer":
ReplyDeleteI loved my job but not the leadership. I wasted 8 years. There is no amount of education or volunteerism that will ever be enough. If you take up for yourself you will never recover because your supervisor will see to it that you never move up or over. If you like to bend over this is the place for you!
Pros
Working at home. In office employees get perks
Cons
Computer programs that monitor every second of your day, Every second will be used against you even bathroom breaks, Unrealistic metrics.
https://www.indeed.com/cmp/Humana/reviews/devil-behind-a-computer?id=448469d042127da6
Humana Pharmacist for Utilization Management said "Strict metrics, mandatory OT, very sub par compensation":
ReplyDeleteProbably one of the lowest paying companies for pharmacists out there. Every year the new hires are offered less!!! You will be paid $30k to $40k less than other companies pay.
Pros
Work from home
Cons
Strict metrics that must be met, no vacation approved from January to end of March, mandatory OT 3 day per week
https://www.indeed.com/cmp/Humana/reviews/strict-metrics-mandatory-ot-very-sub-par-compensation?id=d834761ea244b9bb
Virginia RN shows how employees get jack squat:
ReplyDeletePros
You feel like you make a difference
Cons
A lot of turnover and changes I have only been employed since May and I am already the person who has worked there the longest.
Advice to Management
Too much turnover. Work life balance is Terrible! The benefits are the worst I have ever had in the healthcare industry.
Kindred at Home CEO David Causby's reply to the Senate Finance Committee was due by September 3rd.
ReplyDeletehttps://www.finance.senate.gov/search?q=David+Causby&access=p&as_dt=i&as_epq=&as_eq=&as_lq=&as_occt=any&as_oq=&as_q=&as_sitesearch=&client=&sntsp=0&filter=0&getfields=&lr=&num=15&numgm=3&oe=UTF8&output=xml_no_dtd&partialfields=&proxycustom=&proxyreload=0&proxystylesheet=default_frontend&requiredfields=&sitesearch=&sort=date%3AD%3AS%3Ad1&start=0&ud=1
Aveanna is down to $7.70 today. SEC filings show Aveanna will buy a group of home health/hospice companies that serve people in Alabama and Tennessee.
ReplyDeletehttps://comfortcarehospice.com/locations/
Aveanna is yet to issue a news release on this development.
Home Health Care News finally found the Aveanna story:
DeleteThe Atlanta-based Aveanna went public through a $100 million IPO earlier this year. While it filed an 8-K on Oct. 1 for the deal, a press release has not yet been issued.
https://homehealthcarenews.com/2021/10/transactions-aveanna-to-acquire-comfort-care-in-345m-deal-henry-ford-health-system-partners-with-contessa/
Aveanna is down to $6.75 today. Still no news release on its $345 million buyout of mostly Alabama hopsices/home healths.
Deletehttps://ir.aveanna.com/node/6941/html
Aveannna was mentioned in a report on "Private Equity at Home".
ReplyDeletehttps://pestakeholder.org/report/private-equity-at-home-wall-streets-incursion-into-the-home-healthcare-and-hospice-industries/
Aveanna Healthcare (J.H. Whitney and Bain Capital) was subject to a Bloomberg investigation that shed light on its cost-cutting practices and their relationship to staffing issues and patient neglect.
Aveanna's stock closed at $5.47 per share today.
Aveanna's stock closed at $1.63 a share today.
ReplyDelete"Seeking Alpha" panned Aveanna's stock:
While the situation is not entirely dismal yet, it is still very challenging, as quite frankly, I see no reason to get involved here given the poor track record of the management team since the IPO. At these low levels, it is too dangerous to bet against the company and shares now, but I see no green shoots to get involved here on the long side as well.