Friday, March 31, 2023

The Weight of Another Buyout

Strange Tony,

What would you think if a former Medicare Chief was in the lineage of both sides of the Gentiva Hospice - Heartland Hospice deal?  One has to go back to 2009 when Gail Wilensky, Ph.D. was on the board of directors of both Gentiva and ManorCare, a former parent corporation for Heartland Hospice.

Gentiva is buying Heartland for $710 million from Promedica Senior Care (formerly HCR ManorCare).  The Carlyle Group bought ManorCare.  It later ran ManorCare into the ground.

Gentiva had its own history of buyouts and corporate combinations, Family Home, VistaCare, Odyssey, Gentiva Health Services, Kindred Healthcare, Kindred at Home and back to Gentiva.  The company has been majority owned by financial rapscallions since 2018.  

Let's hope current owners Clayton, Dubilier and Rice don't crash us like Carlyle did to ManorCare.   My fellow hospice workers are dinged up from all the cuts on the people side of hospice delivery.  One wheel is off and several more are wobbling mightily.

I wonder how much additional debt Gentiva will take on to buyout Heartland.  How much higher will interest expenses rise and where will CDR look to cut to pay for those increased financing costs?  The pinheads in Atlanta won't tell us.  Maybe Moody's will in their Charlotte Buyer rating update.  

Anonymous

Monday, March 27, 2023

Hospice Clearly Lost its Way

Strange Tony,

Ira Byock, M.D. is on record that hospice needs to be blown up and started over.  When asked about regulatory solutions in a recent panel he referred to statements issued by several professional hospice associations.  Dr. Byock said the industry knew enough in 2008 to issue those guidelines.

On the panel was the Chief Medical Officer of Vitas Hospice Joseph Shega, M.D.. A Vitas piece on his promotion states:

He joined VITAS in 2013 as a regional medical director and was promoted to senior vice president and national medical director in 2016.

Vitas is owned by Chemed which is publicly traded on the NYSE.  In October 2017 Vitas settled with the Justice Department for $75 million for fraudulent billing.

The settlement resolves allegations that between 2002 and 2013 Vitas knowingly submitted or caused to be submitted false claims to Medicare for services to hospice patients who were not terminally ill.

The settlement also resolves allegations that between 2002 and 2013, Vitas knowingly submitted or caused to be submitted false claims to Medicare for continuous home care services that were not necessary, not actually provided, or not performed in accordance with Medicare requirements.

According to the complaint, the defendants set goals for the number of continuous home care days billed to Medicare and used aggressive marketing tactics and pressured staff to increase the volume of continuous home care claims, without regard to whether the patients actually required this level of crisis care. 

The interview did not mention this settlement.

 Dr. W. Edwards Deming rued the negative impact on quality arising from temporary corporate ownership with the express purpose of garnering huge returns from flipping the company.  He referred to this emerging phenomena in his Seven Deadly Diseases.

The world's quality guru, Dr. W. Edwards Deming, spoke in 1984 about an economy without takeovers, without leveraged buyouts (LBO firms).  LBO morphed into private equity before exploding the last two decades.  Greed is their constancy of purpose.

Dr. Byock noted that the hospice industry gets a bad rap for patients that get better under our care.  Our hospice got many patients better under the expert care of our founding Medical Director.  As soon as they no longer met hospice criteria he discharged them.  

Corporate structures changed that.  Our Hospice and Palliative Medicine board certified doctor had to submit a request to remove a patient from hospice care that often took weeks for the Regional Medical Director to process.  I heard our Regional Medical Director tell our IDG Team that those patients were good for six months and only needed to be discharged at the next recertification.  Our Medical Director disagreed but had no power to change corporate policy. 

Our founding Medical Director knew good managers appreciated staff.  He was repeatedly disturbed by the myriad of cuts imposed by new owners, the last two have been majority private equity.  Owners cut paid time off, reduced the number of holidays and cut holiday pay 33%.  I watched financial rapscallions institute new software that robbed employees of pay for time worked and mileage driven in the provision of care. 

Dr. Byock may want private equity owned hospices to increase their margin but he needs to look and see on whose back that occurs. 

Our founding Medical Director enjoyed telling the story of the corporate office having a special dark room, not much bigger than a closet, where they take a new manager and suck out half their brain.  I very much enjoyed watching the faces of those he told.  It generally took a few minutes for it sink in.

Thank you to Death Nurse for making me aware of the panel interview and sharing their wisdom in this arena.  "Game over" for hospice is due to the infiltration of financial rapscallions in the very fiber of American politics.  When private equity billionaires make government policy, they can do what they want.

Anonymous

Wednesday, March 15, 2023

Gentiva Deal for Promedica to Close in Q2

Strange Tony,

Gentiva's purchase of ProMedica's Heartland Hospce/Homecare will close in Q2 2023.  Goldman Sachs committed financing for the deal while six other investment banks advised Clayton, Dubilier and Rice (60% owner) and Humana (40% owner).  

Original financing for CDR's stake in Gentiva went through Charlotte Buyer.  Moody's is yet to issue an update to their rating given the deal terms.

This shows how disconnected hospice has become from its founding principles.  It's now an executive and financial rapscallion moneymaker.  Sad, even tragic for those our hospice serves..

Anonymous

Thursday, March 2, 2023

Gentiva Scarfing Up Heartland Hospice


Strange Tony,

Gentiva Hospice will buy Promedica's Heartland Hospice/Home Care in a $710 million deal.  Gentiva is buying 120 hospice locations serving 9,000 hospice patients with 4,000 employees.  

“This transaction is an exciting development for patients and their families that will enable us to extend our best-in-class caregiver recruitment and retention programs and provide high-quality care to more patients in more areas throughout the country,” Causby said in a press release. “Heartland is a high-quality hospice and home care provider that shares our values on compliance and putting patients first, and my colleagues and I look forward to growing our number of caregivers so we can expand access to the highest-quality care for more seniors.”

Gentiva CEO David Causby is familiar with merging hospice organizations.  Then COO Causby botched the integration of Harden's hospices into Gentiva. 

Our hospice never heard from Causby, not as COO, CEO or CEO/financial rapscallion partner.  He's consistently shown "profit matters" most.  When talented, dedicated hospice nurses raised quality of care issues they were shown the door.

"Senior Housing News" report on the buyout stated:

Although Gentiva couldn’t share a precise breakdown for the number of assisted living residents it caters to....

More like wouldn't.  Homecare Homebase tracks patient location and is able to differentiate between various types of senior living.  

Moody's rates Gentiva's (Charlotte Buyer) debt and is yet to mention any impact of deal financing.  There are two equity partners, CDR (60%) and Humana (40%).  The announcement indicated additional debt will be incurred.

Goldman Sachs Bank USA is providing financing to Gentiva. Deutsche Bank Securities Inc., UBS Investment Bank, BNP Paribas Securities Corp., Citizens Bank, N.A., Truist Securities and Wells Fargo are serving as financial advisors and providing financing.

Heartland Hospice was once part of ManorCare.  The Carlyle Group, another financial rapscallion, drove ManorCare into bankruptcy.  Promedica purchased ManorCare's remains in 2018.  Both companies were based in Toledo, Ohio.

There is a history of financial rapscallions bleeding both Gentiva and Heartland.  Spin is as spin does.  That's not the heart of hospice.   It is the corporate executive/financial rapscallion way.  Our hospice has felt their greed over and over and over.

Anonymous

Monday, December 26, 2022

Curo Healthcare Glassdoor Flips to Gentiva

 

Strange Tony,

The former Glassdoor site for Curo Healthcare is now Gentiva.  That means a CEO change from Curo's Larry Graham to Gentiva's David Causby.  It's not clear Graham made the cut when our 60% financial rapscallion owners flipped from TPG/WCAS to CDR.

So far employees aren't rushing to rate Causby.  He has two ratings and a 7% approval.  Gentiva staff have the option to do so under the former Kindred Hospice Glassdoor site where Causby has a 75% rating.  That site was also recently rebranded for Gentiva.

While one can call Causby's low rating spurious there are other concerns for potential hospice employees.  Less than half would recommend their workplace to a friend and more than 50% have less than a positive outlook for Gentiva Hospice, now under Clayton, Dubilier and Rice.

The two lowest parameters are work/life balance and senior management.  A Virginia social worker echoed these sentiments on the former Curo Healthcare Indeed site saying:

I would like for the company to show more appreciation for those of us who have been loyal employees.

Causby and company ran off nearly all the talented, loyal employees at our hospice.  We would have loved to give him feedback as that was happening but management provided us no opportunities.  He would have been lucky to have gotten a 7% positive rating.  

Causby cut everything in half, including our census.  He's proven he can prioritize his personal wealth over employee satisfaction and quality hospice care.  The good news is his material gains are temporary and the day will come that he atones for his actions on this earthly plane.  

Anonymous

Thursday, December 15, 2022

Tony Strange and Rod Windley Step Down


Strange Tony,

Aveanna Healthcare's CEO Tony Strange and Executive Chairman Rod Windley have been sent packing by financial rapscallion Bain Capital.  Bain and J.H. Whitney hold the vast majority (>70%) of Aveanna shares.  

Aveanna's stock price mostly sank in 2022 and is worth less than $1 per share.  It has traded like a company headed toward bankruptcy.  

COO Jeff Shaner will become CEO.  Shaner headed the hospice division under Gentiva while David Causby was over home health.  

Causby is currently CEO of Kindred Hospice, recently rebranded back to Gentiva, and under the ownership of financial rapscallion Clayton, Dubilier and Rice.

Bain and CDR expect huge profits, which bodes poorly for Aveanna and Gentiva staff.  Pay and benefits will remain as miserly as possible for regular staff.

The Tony Stranges and Rod Windleys get to exercise their grossly excessive separation packages that only exist at executive levels.  

They cannot take it with them and someday they will answer for their earthly deeds.

Anonymous

Monday, November 28, 2022

Financial Rapscallions Damage a Once Great Hospice


Strange Tony,

"Home Health Care News" ran a piece on how private equity firms think.  An operating partner at our new owner said:

"The simplest way I find to explain it is: if we’re successful, we take good companies, and we make them great companies.”

That's bull excrement in light of our hospice experience under majority private equity ownership.  TPG Capital and Welsh, Carson, Anderson and Stowe owned 60% of Kindred at Home from July 2018 to August 2021.  

The market will tell you right away.
It did.  Their greatness resulted into an over 50% drop in census.  Turnover went through the roof after they eliminated half the office jobs, cut two paid holidays, reduced holiday pay by 33% and installed crappy technology that stole pay and mileage reimbursement from dedicated hospice workers.  

Signature programs for hospice patients disappeared.  Financial rapscallions cut the many little things we did for patients in recognizing special days (birthdays, anniversaries) and honoring their service in the U.S. military.  

Before Humana et al we put much thought into our annual memorial service for grievers, planning a number of ways for families to remember and honor memories of their deceased loved ones.  Tight budgets eliminated nearly all of those personal touches.

Fortunately, our hospice's founding Medical Director missed financial rapscallion ownership as a board certified physician in hospice and palliative care.  That was a blessing, however he did experience it as a patient while the COVID-19 pandemic roared through our community and filling ICUs.  He'd watched the development of MRNA vaccines and strongly believed in their use.  Our hospice said his nurse had been vaccinated.  That was a lie.  

In addition, this nurse had been arrested for harming a family member,  A second arrest for the same crime occurred after our Medical Director's death.  Vaccine and family abuse information seems pertinent to a family intent on keeping their loved one safe.  That occurred under private equity ownership.

I don't recall anything close to these violations during my time with hospice prior to financial rapscallion ownership.

"Home Health Care News" would do better to interview hospice workers and learn how private equity firms damage care delivery and short shrift employees.  Sadly, courage is in short supply.

Anonymous