By the way, the APA style guide settled on "health care" over "healthcare". Though I agree we should refer to the US health care system as "healthcare" in contrast to what people want which is "health care". Unfortunately the APA (and everyone who follows their guide including most newspapers) didn't ask me.
Claiming healthcare is correct over health care distracts from this appropriate skewering of Cerberus and Steward. Worse, he writes payout when he means pay out. Unlike healthcare and health care, those two are not interchangeable.
Hi Preston, I am curious if the bank got paid back? Not that I worry about the lending bank's situation but rather they seem the necessary enabler in these schemes. Most of these stories seem to end with the leveraged entity forced into bankruptcy. But then that would seem to wipe out the bank's interest. But knowing how these stories end, why are banking still lending money to fund these schemes? They must also be profiting but how? If they know their holdings will get written down, what's in it for them?
They don't all go bankrupt, but there is risk. Just look back to 2008 with Solomon and Bear Sterns. But at the same time, when they issue debt they are first in line if a company goes bankrupt. Like all the way bankrupt, not just restructuring bankrupt. The entities assets are sold and creditors get the first bite. Plus they make interest, underwriting fees, and spread the risk.
Damn! Great breakdown Preston. Very similar to what happened with Crozer system in Philly - same MO - bought by PE (Prospect), land sold off to MPT, riddled with debt, no improvements made to the hospitals themselves, and ended having to shut down most services at 2 out of the 4 hospitals leaving a mess. How and why in the world is this still ok, God only knows! :/
Absolutely! How and why there are no guardrails to deals like this is crazy. At least at this point, with the experience with Hahnemann, Crozer and now Steward, regulatory agencies should develop some sort of protections that are out in place - I read about Rhode Island officials having veto power to nix any hospital sales by PE owners like Steward - something like that or at least some way to hold these folks to their word.
By the way, the APA style guide settled on "health care" over "healthcare". Though I agree we should refer to the US health care system as "healthcare" in contrast to what people want which is "health care". Unfortunately the APA (and everyone who follows their guide including most newspapers) didn't ask me.
Claiming healthcare is correct over health care distracts from this appropriate skewering of Cerberus and Steward. Worse, he writes payout when he means pay out. Unlike healthcare and health care, those two are not interchangeable.
Hi Preston, I am curious if the bank got paid back? Not that I worry about the lending bank's situation but rather they seem the necessary enabler in these schemes. Most of these stories seem to end with the leveraged entity forced into bankruptcy. But then that would seem to wipe out the bank's interest. But knowing how these stories end, why are banking still lending money to fund these schemes? They must also be profiting but how? If they know their holdings will get written down, what's in it for them?
They don't all go bankrupt, but there is risk. Just look back to 2008 with Solomon and Bear Sterns. But at the same time, when they issue debt they are first in line if a company goes bankrupt. Like all the way bankrupt, not just restructuring bankrupt. The entities assets are sold and creditors get the first bite. Plus they make interest, underwriting fees, and spread the risk.
Damn! Great breakdown Preston. Very similar to what happened with Crozer system in Philly - same MO - bought by PE (Prospect), land sold off to MPT, riddled with debt, no improvements made to the hospitals themselves, and ended having to shut down most services at 2 out of the 4 hospitals leaving a mess. How and why in the world is this still ok, God only knows! :/
Thanks so much! I have no idea at all... We need major change. The extraction should be criminal.
Absolutely! How and why there are no guardrails to deals like this is crazy. At least at this point, with the experience with Hahnemann, Crozer and now Steward, regulatory agencies should develop some sort of protections that are out in place - I read about Rhode Island officials having veto power to nix any hospital sales by PE owners like Steward - something like that or at least some way to hold these folks to their word.
Im a doctor at steward. They havent paid anyone. In tons of debt. They are going to need a private equity buyout. Place was run into the toilet