Prospect Medical Holdings files for bankruptcy after owners took hundreds of millions in payouts

[RandomNumbers]

Because of course they did.

This is your healthcare on robber baron capitalism.

https://www.cbsnews.com/news/prospect-medical-holdings-bankruptcy-private-equity/

(emphasis added)

Along with Steward, Prospect Medical has been one focus of an ongoing CBS News investigation revealing how private equity investors have siphoned hundreds of millions of dollars from community hospitals with devastating public health consequences.

From 2010 to 2021, private equity firm Leonard Green & Partners controlled a majority stake in Prospect Medical. CBS News has reported on a series of financial moves the company took to issue leadership a $457 million dividend in 2018. Prospect Medical's CEO Sam Lee took home about $90 million while Leonard Green shareholders were paid $257 million.

Among the similarities between Prospect Medical and Steward, both of them relied on the value of their hospital real estate to help finance large payouts for their owners. The transactions resulted in onerous lease agreements that diverted funds away from direct patient care.

Last week, a powerful, bipartisan Senate committee found what it said was "overwhelming evidence of financial mismanagement" as Leonard Green and Prospect Medical sought to drive profits, causing hospitals serving vulnerable communities to cut services or close altogether. The Senate committee's findings were part of a 162-page report report that concluded private equity's financial model may pose "a threat to the nation's health care infrastructure, particularly in underserved and rural areas."

[malaise]

1. Vulturecapitalists

They should all be in prison

[DENVERPOPS]

8. Gordon Greko?

or what ever his name was in the movie: And his statement: "Greed is Good" probably emboldened tens of thousands of MBA's.......

[BOSSHOG]

2. Private Equity's Financial model is a cancer

Your health is irrelevant when one of “them” is shopping for a larger yacht. Conservative values in action.

[dalton99a]

3. The destructive parasites known as private equity should be banned from healthcare, housing and essential services

[slightlv]

4. I was just going to write the exact same thing dalton!

Anything that impacts life, liberty whatever one needs to live happy and healthy should be off limits to these vultures. I include in that private prison and private schools, too. Some things are just too important to have them gift wrapped for billionaires, IMNSHO.

[DENVERPOPS]

9. All my life

some have told me: Money is the root to all evil......to which I replied: No....Greed is the root to all evil........LOL

[dlk]

5. The bankruptcy court should order clawbacks

Last edited Tue Jan 14, 2025, 10:52 AM - Edit history (1)

There’s no excuse.

[eggplant]

6. I came here to say this.

[Pinback]

7. "Best healthcare system in the world"

Whatever you, don’t make the mistake of getting sick or injured.

[DENVERPOPS]

10. The Republican Mantra seems to be:

IF YOU GET SICK......DIE............

That certainly was more than re-inforced during the Covid Pandemic.......

[Roy Rolling]

11. No Effin Shit

For-profit hospitals were a loser for patients since 1982.

By 2025 they’ve sucked the “patient” dry.

Hospital capitalism is dead. Their biggest customer—-insurance companies and Medicare—-are broke.

[bobalew]

13. These THEIVES need

to have all of their “ASSETS” seized, & then be put on the street, HOMELESS! Even that would too lax a punishment for them. This is Bonus Funding WHITE privilege culture. What exactly about them makes them think they DESERVE these outrageous payouts? What exactly is it about them that makes them think that THEY are SUPERIOR? They are lowlife thieves in powerful positions. Just like a few other high-leveled MAGATheriums…

[Joinfortmill]

12. Bums, goddamn bums.

[Meowmee]

14. I wonder how many others are doing the same thing?

[Orrex]

15. #luigi