Private Equity Companies Back In The News

[1955]

The latest targets have been hospitals:

Private equity firms now control many hospitals
What exactly is private-equity?

Of course the companies themselves are quick to point out their usefulness but they often leave targets in debt and bankruptcy.

This really hits home with me because I lost my pension through their process. Bain Capital purchased a company that I had worked for & dismantle it selling off its assets, borrowing against the pension plan then forcing it into bankruptcy. In affect they stole the pension plan from all us employees, perfectly legal.

In my mind its just a system for big money to suck us dry! Hopefully they’ll have some explaining to do when at the “Pearly Gates”

 

[WhatInThe]

Hospital systems have been around for decades. In some respects it allowed failing hospitals to stay open because those systems brought in patients and practices. On the other hand it also can cause issues for private practices

Around here a local hospital owned by a national company of hospitals is in the process of shutting down. They did exactly what you described bought a fully functional hospital and less than 4 years later is in the process of being shut down and/or reducing services. The county had to get a court order to keep the emergency room open but that expired.

The hospital chain that sold it in the first place did so less than 2 years after a strike. One of the changes was they rotated or moved nurses around several counties of different hospitals. Especially the students. Took someone to the ER and some staff had to constantly ask where stuff was kept to treat patients.

Ironically the original owners/system is being asked to re open the same facility sold several years ago.

 

[SeniorBen]

The latest targets have been hospitals:

Private equity firms now control many hospitals
What exactly is private-equity?

Of course the companies themselves are quick to point out their usefulness but they often leave targets in debt and bankruptcy.

This really hits home with me because I lost my pension through their process. Bain Capital purchased a company that I had worked for & dismantle it selling off its assets, borrowing against the pension plan then forcing it into bankruptcy. In affect they stole the pension plan from all us employees, perfectly legal.

In my mind its just a system for big money to suck us dry! Hopefully they’ll have some explaining to do when at the “Pearly Gates”

Ah, yes... venture capitalists, otherwise known as "vulture capitalists." Was Mitt Romney at Bain Capital when they took over your company? Money is all that matters, no matter who gets hurt.

 

[1955]

Yes he was. Our company was highlighted in this story:

Romney’s Bain Capital Profited Billions by Bankrupting American Workers

So I started out working for American Dade, who was bought by Baxter Healthcare, who then sold it off to Behring creating Dade Behring, that Bain Capital bought & did it’s thing. After 18 years working there I had a pretty good pension that was guaranteed until Bain Capital figured out a legal way to relieve people of their benefit.

 

[Pepper]

I may change my name to DisgustedWoman.

 

[1955]

I’m over it & I still retired early but it’s just infuriating to see this kind of thing still happening.

 

[fuzzybuddy]

A few years ago, in the dial up days, a PE firm bought my small cable/internet provider. I live in the sticks, it's all we had. They were just holding it so they could sell at a profit. Of course, they weren't going to spend a cent on any improvements. Technology greatly improved, but we still had dail-up-when it worked. Finally, it was sold to a company that actually was in the business of providing a service, not in the business of waiting to pawn it off for a profit.

 

[JimBob1952]

Ah, yes... venture capitalists, otherwise known as "vulture capitalists." Was Mitt Romney at Bain Capital when they took over your company? Money is all that matters, no matter who gets hurt.

Venture capitalists (who invest in small startup companies) are completely different from private equity investors, who get the "vulture capitalist" moniker.

I've noticed that people who complain about the evils of capitalism usually don't know very much about it.

 

[1955]

Venture capitalists (who invest in small startup companies) are completely different from private equity investors, who get the "vulture capitalist" moniker.

Absolutely true...

 

[JimBob1952]

Yes he was. Our company was highlighted in this story:

Romney’s Bain Capital Profited Billions by Bankrupting American Workers

So I started out working for American Dade, who was bought by Baxter Healthcare, who then sold it off to Behring creating Dade Behring, that Bain Capital bought & did it’s thing. After 18 years working there I had a pretty good pension that was guaranteed until Bain Capital figured out a legal way to relieve people of their benefit.

The story says that the pension was replaced by a 401k. Is that true?

There is a reason that almost no companies offer old-fashioned pensions anymore. People retire at 60 or 65 and now live another 35 or 40 years. Actuarially speaking, it's almost impossible to cover a defined benefit pension plan. The only organizations that can do so are those with the power to tax, i.e. governments.