Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

RandomNumbers

(18,391 posts)
Mon Jan 13, 2025, 08:47 PM Jan 13

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

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."


15 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Prospect Medical Holdings files for bankruptcy after owners took hundreds of millions in payouts (Original Post) RandomNumbers Jan 13 OP
Vulturecapitalists malaise Jan 13 #1
Gordon Greko? DENVERPOPS Jan 13 #8
Private Equity's Financial model is a cancer BOSSHOG Jan 13 #2
The destructive parasites known as private equity should be banned from healthcare, housing and essential services dalton99a Jan 13 #3
I was just going to write the exact same thing dalton! slightlv Jan 13 #4
All my life DENVERPOPS Jan 13 #9
The bankruptcy court should order clawbacks dlk Jan 13 #5
I came here to say this. eggplant Jan 13 #6
"Best healthcare system in the world" Pinback Jan 13 #7
The Republican Mantra seems to be: DENVERPOPS Jan 13 #10
No Effin Shit Roy Rolling Jan 13 #11
These THEIVES need bobalew Jan 13 #13
Bums, goddamn bums. Joinfortmill Jan 13 #12
I wonder how many others are doing the same thing? Meowmee Jan 13 #14
#luigi Orrex Jan 13 #15

DENVERPOPS

(10,675 posts)
8. Gordon Greko?
Mon Jan 13, 2025, 10:31 PM
Jan 13

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

BOSSHOG

(40,948 posts)
2. Private Equity's Financial model is a cancer
Mon Jan 13, 2025, 08:51 PM
Jan 13

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

slightlv

(4,706 posts)
4. I was just going to write the exact same thing dalton!
Mon Jan 13, 2025, 09:17 PM
Jan 13

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

(10,675 posts)
9. All my life
Mon Jan 13, 2025, 10:33 PM
Jan 13

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

DENVERPOPS

(10,675 posts)
10. The Republican Mantra seems to be:
Mon Jan 13, 2025, 10:35 PM
Jan 13

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

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

Roy Rolling

(7,250 posts)
11. No Effin Shit
Mon Jan 13, 2025, 11:17 PM
Jan 13

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

(365 posts)
13. These THEIVES need
Mon Jan 13, 2025, 11:38 PM
Jan 13

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…

Latest Discussions»General Discussion»Prospect Medical Holdings...