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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.
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Huge b/c how their financial troubles are dealt with will determine how U.S. HC looks in the future.
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Major opportunity for HC reform, bc it'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?
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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?
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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
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
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't pay bills?
They will look to Gov't for bailout
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Many bondholders need to be disappointed.
What will they do when they can't pay bills?
They will look to Gov't for bailout
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For-profit hospitals are also highly-leveraged. They also face liquidity crisis due to low volumes.
What will they do when they can't pay bills?
They will look to Gov't for bailout
5/ https://www.bloomberg.com/news/articles/2020-03-13/debt-laden-u-s-hospitals-face-critical-30-days-jpmorgan-says
What will they do when they can't pay bills?
They will look to Gov't for bailout
5/ https://www.bloomberg.com/news/articles/2020-03-13/debt-laden-u-s-hospitals-face-critical-30-days-jpmorgan-says
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?
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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?
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A few principals I suggest when Gov't asked to bailout:
1- pay the frontline who provided care during #COVID19. PE execs are not taking "risk"
2- Let equity fail. Its a free market. They bet wrong.
3- Use this opportunity to advance HC reform that improves access for all
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1- pay the frontline who provided care during #COVID19. PE execs are not taking "risk"
2- Let equity fail. Its a free market. They bet wrong.
3- Use this opportunity to advance HC reform that improves access for all
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