Read on Twitter
Spent a few minutes this p.m. reading financial news re: FOR-PROFIT U.S. healthcare companies. There is a HUGE story here, that is not getting enough press.
Huge b/c how their financial troubles are dealt with will determine how U.S. HC looks in the future.
1/
Huge b/c how their financial troubles are dealt with will determine how U.S. HC looks in the future.
1/
Major opportunity for HC reform, bc it& #39;s opportunity for HC reform after #COVID19
FOR-PROFIT HC cos. at risk of bankruptcy...
What will the government do? Bail out private equity and bond-holders, or let them fail and use as an opportunity to reform delivery system?
2/
FOR-PROFIT HC cos. at risk of bankruptcy...
What will the government do? Bail out private equity and bond-holders, or let them fail and use as an opportunity to reform delivery system?
2/
Private-equity backed @envision is in liquidity crisis. To conserve cash (protect their investment), they are not paying doctors FOR CARE DELIVERED LAST YEAR.
PE investors are taking $ from front-line providers to protect their investment & bondholders
3/ https://www.bloomberg.com/news/articles/2020-04-03/kkr-backed-envision-withholds-doctor-pay-as-routine-care-slows">https://www.bloomberg.com/news/arti...
PE investors are taking $ from front-line providers to protect their investment & bondholders
3/ https://www.bloomberg.com/news/articles/2020-04-03/kkr-backed-envision-withholds-doctor-pay-as-routine-care-slows">https://www.bloomberg.com/news/arti...
These companies are highly leveraged. “Envision carries more than $7 billion of debt amassed through what was, the 3rd-largest HC leveraged buyout ever.”
Many bondholders need to be disappointed.
What will they do when they can& #39;t pay bills?
They will look to Gov& #39;t for bailout
4/
Many bondholders need to be disappointed.
What will they do when they can& #39;t pay bills?
They will look to Gov& #39;t for bailout
4/
For-profit hospitals are also highly-leveraged. They also face liquidity crisis due to low volumes.
What will they do when they can& #39;t pay bills?
They will look to Gov& #39;t for bailout
5/ https://www.bloomberg.com/news/articles/2020-03-13/debt-laden-u-s-hospitals-face-critical-30-days-jpmorgan-says">https://www.bloomberg.com/news/arti...
What will they do when they can& #39;t pay bills?
They will look to Gov& #39;t for bailout
5/ https://www.bloomberg.com/news/articles/2020-03-13/debt-laden-u-s-hospitals-face-critical-30-days-jpmorgan-says">https://www.bloomberg.com/news/arti...
What happens if these medical practice companies go bankrupt?
What happens if these hospitals go bankrupt?
these are real ???s
No reason to think that medical care returns to "normal" 2 months...and what will normal look like after that?
6/
What happens if these hospitals go bankrupt?
these are real ???s
No reason to think that medical care returns to "normal" 2 months...and what will normal look like after that?
6/
