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

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