Hospital chain declares bankruptcy

This is just the Hahnemann closure at scale. The end result was inevitable once the MPT deal happened.

nimbus said:

Attorney General Mayes Announces Investigation into Steward Health Care’s Bankruptcy

PHOENIX – In response to Steward Health Care’s bankruptcy filing in a Texas bankruptcy court on May 6, 2024, and news of its planned auction of four Arizona hospitals, Attorney General Kris Mayes announced that she is opening an investigation into the circumstances leading up to Steward Health...

www.azag.gov

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Be curious to see where that goes. I imagine Mass is not far behind.

Anyone have insight into the Florida based Steward hospitals? Are they being sold?

One of my good friends is the CFO of a PE firm. They have 3 or 4 multibillion dollar portfolios. All they care about is 1. Sucking all the life out of a broken company as they dismantle it. Or 2. Rebuilding and rebranding failing companies to suck profits out of them before selling them for a profit. Or 3. Investing in good companies that are mismanaged so they can suck all the profits out of them as they take them to the next level, and then sell them for a big profit.
At least they’re privately owned, though the investors want their profits. What they did during Covid was pretty cold. And no F’s were given. People fired, no rents ever paid, walking away from some companies all together and dumping them on the bank as a loss, after selling off everything of any value of course. The whole company is a widget to them. Employees aren’t a consideration at all, they’re a line item on a balance sheet.

IlDestriero said:

One of my good friends is the CFO of a PE firm. They have 3 or 4 multibillion dollar portfolios. All they care about is 1. Sucking all the life out of a broken company as they dismantle it. Or 2. Rebuilding and rebranding failing companies to suck profits out of them before selling them for a profit. Or 3. Investing in good companies that are mismanaged so they can suck all the profits out of them as they take them to the next level, and then sell them for a big profit.
At least they’re privately owned, though the investors want their profits. What they did during Covid was pretty cold. And no F’s were given. People fired, no rents ever paid, walking away from some companies all together and dumping them on the bank as a loss, after selling off everything of any value of course. The whole company is a widget to them. Employees aren’t a consideration at all, they’re a line item on a balance sheet.

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Sounds like organized crime out of a fancy office with fancy letterhead.

nimbus said:

Sounds like organized crime out of a fancy office with fancy letterhead.

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“A lawyer with a briefcase can steal more than 100 men with guns.”

-Mario Puzo, author of The Godfather and other mafia novels.

IlDestriero said:

One of my good friends is the CFO of a PE firm. They have 3 or 4 multibillion dollar portfolios. All they care about is 1. Sucking all the life out of a broken company as they dismantle it. Or 2. Rebuilding and rebranding failing companies to suck profits out of them before selling them for a profit. Or 3. Investing in good companies that are mismanaged so they can suck all the profits out of them as they take them to the next level, and then sell them for a big profit.
At least they’re privately owned, though the investors want their profits. What they did during Covid was pretty cold. And no F’s were given. People fired, no rents ever paid, walking away from some companies all together and dumping them on the bank as a loss, after selling off everything of any value of course. The whole company is a widget to them. Employees aren’t a consideration at all, they’re a line item on a balance sheet.

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And you like this person? This CFO? Because if he has the pull of a CFO and makes some big financial decisions for his company he sounds like a total Sociopath.
Cold like you said.

makemoney2024 said:

And you like this person? This CFO? Because if he has the pull of a CFO and makes some big financial decisions for his company he sounds like a total Sociopath.
Cold like you said.

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Sure, in 1. The company is broken and going to the scrap heap/fire sale either way. Sometimes they take chances on companies and try to turn them around but can’t. Then it’s time to change to plan A. Get some money back out and take the L. He doesn’t buy them healthy and break them, like the healthcare examples we know. In 2 and 3 they add value by fixing poor business plans and the wrong leadership. Those companies grow and survive better than ever.
It’s interesting how differently corporate finance people see things compared to healthcare people or even healthcare executives. Which of course is exactly the problem with PE getting into the healthcare space. There was a discussion a few years back about PE buying a failing Philadelphia hospital, bankrupting and closing it with minimal notice when they couldn’t turn it around, after making minimal effort to really do so. The justification for the investment was that they could flip the real estate to developers and get their money back. Thats how they think. An inner city hospital caring for the most at risk was bought with the back up plan of turning it into condos and street level retail. The staff and patients are just an inconvenience, like drug addicts squatting in an abandoned warehouse you own waiting for gentrification.

IlDestriero said:

One of my good friends is the CFO of a PE firm. They have 3 or 4 multibillion dollar portfolios. All they care about is 1. Sucking all the life out of a broken company as they dismantle it. Or 2. Rebuilding and rebranding failing companies to suck profits out of them before selling them for a profit. Or 3. Investing in good companies that are mismanaged so they can suck all the profits out of them as they take them to the next level, and then sell them for a big profit.
At least they’re privately owned, though the investors want their profits. What they did during Covid was pretty cold. And no F’s were given. People fired, no rents ever paid, walking away from some companies all together and dumping them on the bank as a loss, after selling off everything of any value of course. The whole company is a widget to them. Employees aren’t a consideration at all, they’re a line item on a balance sheet.

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Yep have a friend in PE who was talking about the steps they were taking to suck all the profits out of the healthcare entity they bought and then turned to me and was like so can I buy your group? We can maximize your efficiency and improve things.

GassYous said:

Yep have a friend in PE who was talking about the steps they were taking to suck all the profits out of the healthcare entity they bought and then turned to me and was like so can I buy your group? We can maximize your efficiency and improve things.

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I hope you gave him two middle fingers. These people.