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S&P downgrades RP amid worries its capital structure could become unsustainable
[link=https://radiologybusiness.com/topics/healthcare-management/healthcare-economics/sp-downgrades-radiology-partners-unsustainable-default]https://radiologybusiness…-unsustainable-default[/link]
Quote from Radiology Business
[b]S&P Global Ratings downgraded Radiology Partners on Monday amid concerns the imaging industry giants capital structure could become unsustainable.[/b]
The El Segundo, California-based group has been operating with a cash flow deficit, meaning more money is flowing out than in, and high leverage for the past two years. Thats because practice leaders have remained aggressive on acquisitions, credit analysts noted.
Radiology Partners now has some $3.37 billion in obligations, including a revolving credit line due in less than six months and significant debt maturities looming in July 2025. It is further constrained by delayed collections, due to the challenging arbitration process under [link=https://radiologybusiness.com/topics/healthcare-management/healthcare-policy/no-surprises-act-urban-institute-radiology-margins-sp#:~:text=The%20No%20Surprises%20Act%20is,being%20pushed%20out%20of%20networks.]surprise-billing legislation[/link], along with a tight labor market.
The negative outlook reflects our expectation that cash flow deficits will continue over the next 12 months, further pressuring liquidity, and raises the possibility of an unsustainable capital structure, analysts Richa Deval and David A. Kaplan [link=https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/2997104]wrote June 5[/link]. It also reflects the increasing risk of a debt restructuring or below par repurchase, which we could view as distressed and tantamount to default.
S&P has downgraded Rad Partners credit rating from B- to CCC+, a [link=https://www.spglobal.com/ratings/en/about/intro-to-credit-ratings]speculative grade[/link] denoting its debts are currently vulnerable and dependent on favorable business, financial and economic conditions to meet commitments. As of March 31, the companys liquidity consists of $70 million in cash on hand and another $105 million remaining on its revolving credit line. Experts believe the funds should be sufficient to cover needs over the next year, including debt amortization, working capital requirements, and tax distributions to shareholders.
But a shrinking cash cushion is leaving little wiggle room for further setbacks, the analysis noted. Thats because of a sizable chunk of the practices debts are slated to mature by 2025. RPs obligations now include:
[ul][*]$335 million drawn from its $405 million revolving credit line, due in November 2024.[*]$1.6 billion in term loans due in July 2025.[*]$800 million in secured notes, also due in July 2025.[*]$638 million more in unsecured debts (meaning not backed by collateral) owed by July 2028. [/ul] Deval and Kaplan anticipate RP may face challenges refinancing these debts at favorable terms, given prevailing capital market conditions. Even if leaders are able to, higher interest expenses may create further cash pressures. Experts anticipate the companys debts to remain at roughly 10 to 10.5 times its adjusted earnings in 2023, falling to below 9.5 by next year.
S&P issued a negative outlook for the foreseeable future, with tightening liquidity, looming maturities and increasing debts upping the risk of potential default.
That said, we also understand Radiology Partners cost saving initiatives, increased focus on organic growth [rather] than acquisitions, continued efforts to manage labor market conditions and ability to increase subsidies from providers, will eventually improve profitability and credit metrics, analysts noted.
Rad Partners bills itself as the largest radiology practice in the U.S., serving more than 3,250 hospitals and other healthcare facilities. The company has grown rapidly via acquisition over the past seven years, adding 500 physicians and 155 new sites in 2022 alone. As of [link=https://radiologybusiness.com/topics/healthcare-management/healthcare-economics/radiology-partners-growth-strategy-expansion-whitney]April[/link], RP employed more than 3,300 radiologists across all 50 states, interpreting 53 million exams annually.
Former DaVita executive Rich Whitney, MBA, co-founded Rad Partners in 2012. It is supported by private equity firm [link=https://techintonashville.com/news/new-nashville-private-equity-firm-forms-after-spin-out-from-star-investment-holdings/#:~:text=Nashville%20has%20a%20new%20private,assets%20under%20management%2C%20Clark%20said.]Whistler Capital[/link] (31.6% ownership stake as of November)alongside venture capital firm New Enterprise Associates (19.6%) and the Australian sovereign wealth [link=https://www.businesswire.com/news/home/20170503005186/en/Radiology-Partners-Receives-200-Million-Investment]Future Fund[/link] (10%). S&P said its downgrade also reflects RPs corporate decision-making, which prioritizes the interests of the controlling owners, in line with our view of the majority of rated entities owned by private-equity sponsors. It also denoted PEs generally finite holding periods for such companies, with a focus on maximizing shareholder returns.
A Rad Partners spokesman did not immediately respond to a [i]Radiology Business [/i]request for comment Tuesday.
Waduh Dong will surely spin this as a positive for RP. -
81 Replies
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That’s harsh. I just try to see issues from multiple angles. I think, in this case, the numbers speak for themselves.-
Liquidation of assets on the horizon. Could this be a possible opportunity for radiologists to re-take some of these practices from private equity? Seems like they could be bought up on the cheap when RP eventually implodes.
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Yes, this would not necessarily be bad for Rads on the ground. Of course their shares would lose all value.
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We knew that. Lol.
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Cost saving measures. RP will have to implement pay cuts sooner or later.
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Just keep acquiring RP stock.
I’d buy it all now.
I’m sure that’ll work out well.
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Cant wait to hear how RP rads react when theyre told their pay is cut 10% overnight. If they come crawling to my group, Ill first ask them why they sold out. Ill give them an in person interview just to look the sellout in the eye and tell them that they can have an employee job only at my group for 350k and 8 wee vacation. Or Ill maybe offer them a 10 year partnership track at 325k a year. If they give a good answer as to why they sold out, Id consider 5 year to partner. And voting rights, never
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what about recent grads who worked for RP as associates? Same deal?
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Associates at RP were never given equity. They’re given **** funny money that has literal $0 face value unless RP sells to another company above a set strike price. If it sells below that number then you get zilch. They made no effort to give non-buyout associates/partners skin in the game like they did the buyout partners. We’re also talking about ~150k of funny money for an associate after 2 years associate and then 5 years as a partner vesting vs ~2 million equity after 5 years vesting for the buyout partner.
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That said, we also understand Radiology Partners cost saving initiatives, increased focus on organic growth [rather] than acquisitions, continued efforts to manage labor market conditions and ability to increase subsidies from providers, will eventually improve profitability and credit metrics, analysts noted.
RP now asking hospitals for subsidies? -
Everybody is. Can’t see why RP wouldn’t
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Quote from dergon
Everybody is. Can’t see why RP wouldn’t
I thought the sales pitch to organic growth hospitals, not large buy out big city groups, was we will do it without subsidies.
IF RP cant use market power to beat down rad salaries what good are they to hospitals? -
Don’t confuse the sales pitch with reality
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I remember them trying to tell me their ability to autorecommend thyroid nodule f/u was revolutionary and would result in higher reimbursements versus other practices. I felt like Tobias when Carl Weather was so enthusiastic about stew. I think Id like my money back
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Quote from drad123
Quote from dergon
Everybody is. Can’t see why RP wouldn’t
I thought the sales pitch to organic growth hospitals, not large buy out big city groups, was we will do it without subsidies.
IF RP cant use market power to beat down rad salaries what good are they to hospitals?
Thats because their business model (like all private equity) is to create a local monopoly and become the only game in town. In certain cities, they probably feel like they can make threats to quit unless their demands are met. Basically they have hospitals over a barrel in some locations. Turns out that didnt work in Chicago. And if it worked elsewhere, it most certainly put a target on their backs. Any hospital administrator worth their salt would be looking for subsidy free options to replace them before RP even cashes the check. Especially if their TAT and overall service is lackluster. Imagine having studies unread for days and paying a subsidy for the privilege.
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Quote from sartoriusBIG
Quote from drad123
Quote from dergon
Everybody is. Can’t see why RP wouldn’t
I thought the sales pitch to organic growth hospitals, not large buy out big city groups, was we will do it without subsidies.
IF RP cant use market power to beat down rad salaries what good are they to hospitals?
Thats because their business model (like all private equity) is to create a local monopoly and become the only game in town. In certain cities, they probably feel like they can make threats to quit unless their demands are met. Basically they have hospitals over a barrel in some locations. Turns out that didnt work in Chicago. And if it worked elsewhere, it most certainly put a target on their backs. Any hospital administrator worth their salt would be looking for subsidy free options to replace them before RP even cashes the check. Especially if their TAT and overall service is lackluster. Imagine having studies unread for days and paying a subsidy for the privilege.
They never had significant market share in Chicago or LA or Dallas so those examples don’t work. Try Phoenix or El Paso Las Cruces area or Austin or Anchorage AK.
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Quote from sartoriusBIG
Cant wait to hear how RP rads react when theyre told their pay is cut 10% overnight. If they come crawling to my group, Ill first ask them why they sold out. Ill give them an in person interview just to look the sellout in the eye and tell them that they can have an employee job only at my group for 350k and 8 wee vacation. Or Ill maybe offer them a 10 year partnership track at 325k a year. If they give a good answer as to why they sold out, Id consider 5 year to partner. And voting rights, never
Understand your point, but some rads found themselves pretty early and non partners in the middle of RP acquisition. Some are very tied to their locations, own homes and have kids etc…While many in this position typically found a better job and left, I know a few that kinda got stuck in the process.
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Quote from Almondchi
Liquidation of assets on the horizon. Could this be a possible opportunity for radiologists to re-take some of these practices from private equity? Seems like they could be bought up on the cheap when RP eventually implodes.
Rads don’t buy practices. Clueless. We work, then code bill and collect.
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True. Plus, you’d still be in the same boat as PE – trying to buy something that only cash flows when interest rates are 3% and there are still a surplus of Boomer radiologists.
Interest rates quadruple and Boomers retire en mass =
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For those idiots who took a bunch of stock options to be vested over 3 to 5 years — excellent idea!
Next time I need financial advise I will make sure to call you guys.
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“retake the contracts” I think would be more appropriate
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Radiology Partners cost saving initiatives, increased focus on organic growth [rather] than acquisitions, continued efforts to manage labor market conditions and ability to increase subsidies from providers, will eventually improve profitability and credit metrics, analysts noted.
Rad Partners bills itself as the largest radiology practice in the U.S., serving more than 3,250 hospitals and other healthcare facilities. The company has grown rapidly via acquisition over the past seven years, adding 500 physicians and 155 new sites in 2022 alone. As of [link=https://radiologybusiness.com/topics/healthcare-management/healthcare-economics/radiology-partners-growth-strategy-expansion-whitney]April[/link], RP employed more than 3,300 radiologists across all 50 states, interpreting 53 million exams annually.
Rad salaries now have interest rate risk. Nice!-
Used to be that partners were shielded from economic downturns- stop hiring, fire employees- not anymore. RP has democratized 3300 radiologists.
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Even if all rads donated 100k each that’s only 330 mil.
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3300 scumbags. I wish all of them to work until 75 years of age and the realization that they frakkef up big time in hitching their wagon to PE
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satoriousBIG,
They actually might work until 75 or older. With all that funny monopoly money they accepted for sell out!-
RP has own PACS and IT team and admin team. Overhead must be huge. I don’t know how they can afford to pay rads 30 per wrvu.
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Remember they lose a little on each case and make it up in volume.
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whats the 6-12 month prediction? Do they implode?
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Quote from jd4540
whats the 6-12 month prediction? Do they implode?
I don’t think it will happen that soon. I do think the model is pretty unsustainable as many of us kept saying. The current market just sped up their hiring issues. I don’t think RP will exist in the same way in 5 years, will be dismantled in some way.
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What if they are able to file chapter 11 bankruptcy, shed their debt, and continue on. This sounds like a worse case for radiologists: you lose your shares value and now are still shackled to the corporation due to geographic noncompetes and large size of RP controlling much of the market.Im suspicious this was the plan from the beginning and these deals were engineered to fail like this.
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Quote from RadMon
What if they are able to file chapter 11 bankruptcy, shed their debt, and continue on. This sounds like a worse case for radiologists: you lose your shares value and now are still shackled to the corporation due to geographic noncompetes and large size of RP controlling much of the market.Im suspicious this was the plan from the beginning and these deals were engineered to fail like this.
Well, I doubt they planned to lose their principal, but there are plenty of people who have gotten rich along the way who don’t care where the Corp goes now.
With a chapter 11 the company will continue, along with most ofit’s contractual relationships. They will actually be able to nullify whatever unprofitable contracts they have with permission of the court if it helps for the company to emerge. Airlines, railways, steel companies did this all the time during restructuring. A bankruptcy doesnt mean RP or Envision will just disappear as a market force.
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Quote from fw
Quote from RadMon
What if they are able to file chapter 11 bankruptcy, shed their debt, and continue on. This sounds like a worse case for radiologists: you lose your shares value and now are still shackled to the corporation due to geographic noncompetes and large size of RP controlling much of the market.Im suspicious this was the plan from the beginning and these deals were engineered to fail like this.
Well, I doubt they planned to lose their principal, but there are plenty of people who have gotten rich along the way who don’t care where the Corp goes now.
With a chapter 11 the company will continue, along with most ofit’s contractual relationships. They will actually be able to nullify whatever unprofitable contracts they have with permission of the court if it helps for the company to emerge. Airlines, railways, steel companies did this all the time during restructuring. A bankruptcy doesnt mean RP or Envision will just disappear as a market force.
Totally accurate. If they end up using the word ‘bankruptcy’ , it makes people think they have failed – keep in mind all the banks and billionaires, including trump, who have filed for bankruptcy, and been fine. Even envision, which now has to shift gears and reorganize, hasn’t disappeared or dissolved.
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I have heard from a reputable source that two of RP’s main long-term goals are to replace interventional radiology services with lower cost midlevel providers or abscond/retreat from providing those IR services, and to eventually replace diagnostic radiologists with AI. Indeed a transformation of radiology!
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Quote from chalupa_breath
I have heard from a reputable source that two of RP’s main long-term goals are to replace interventional radiology services with lower cost midlevel providers or abscond/retreat from providing those IR services, and to eventually replace diagnostic radiologists with AI. Indeed a transformation of radiology!
I do think that a lot of the big venture money behind these PE based radiology models came in thinking that AI replacing radiologists was just around the corner and that the company with the biggest market share of rads could then reap the gains, putting the former rads’ salaries into their pockets.
Didn’t play out that way.-
Nah. I think perhaps they thought that would be the icing on the cake and accelerate profits, but they would have gone ahead without it even being a consideration.
Private equity doesnt care about game changing advances. They only care about how much profit they can extract as quickly as possible. Private equity is almost never forward looking and longterm profit at the expense of short term profit is abominable for them. Thats why todays situation is so bad for them- lots of debt, not much profit and only the possibility of good profit if they hold out longterm.
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I would guess it would be more like a slow grind down.
What group is going to sell to RP for funny money shares 2.0 after the first trench want to zero? So the ability to increase market share post bankruptcy would likely be impaired.
then theres how they compete to recruit/retain radiologists to staff the contracts they already have. I would expect at least some degree of operational disruption on the ground with at least some attrition. Hard to say just how bad that would be.
And then there is how the hospitals decide to act with a contract comes up. I would guess it is likely that at least a few RFPs for radpartners contracts would come post bankruptcy.
All in all, it adds up to what is likely a significantly smaller, national footprint over a couple of years.
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Quote from dergon
I would guess it would be more like a slow grind down.
What group is going to sell to RP for funny money shares 2.0 after the first trench want to zero? So the ability to increase market share post bankruptcy would likely be impaired.
then theres how they compete to recruit/retain radiologists to staff the contracts they already have. I would expect at least some degree of operational disruption on the ground with at least some attrition. Hard to say just how bad that would be.
And then there is how the hospitals decide to act with a contract comes up. I would guess it is likely that at least a few RFPs for radpartners contracts would come post bankruptcy.
All in all, it adds up to what is likely a [b]significantly smaller, national footprint over a couple of years.[/b]
I think so also.
But at the end of the day, the suits at RP have made their money. Now, if the VC company that backs them ( new venture or something? ) is going to end up making any money is up in the air. I don’t think they counted on this radiology shortage. As long as the market stays the way it is – and all markers point in that direction for near future, it’s not looking good for them.-
That’s why macroeconomic investments are so difficult.
You get one factor wrong or miscalculate on a small scale but with BIG numbers and you are done. In 2008, banks lost more money in one year than had ever been made in the history of banking.
Just because interest rates are 1% and your assets are going to the moon doesn’t mean you’re smart, it means you’re lucky.
And should have sold to a ‘greater fool’ yesterday.
Plus, RP’s demise might be faster than we think.
How does one go bankrupt? Gradually…then suddenly.
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How does one go bankrupt? Gradually…then suddenly.
It’s really all about cash flow and insolvency. Bankruptcy is a legal declaration, but once you cant pay your bills, it falls apart fast, regardless of your balance sheet. All the non liquid assets in the world cant pay the bills today. When rads dont get paychecks, its over.
So yes, suddenly.-
After RP declares bankruptcy, will their noncompetes be enforceable?
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DumbLuck,
One very easy solution to the noncompetes, even if an entity has a monopoly on a large geographical area — teleradiology. -
Quote from Dumb Luck
After RP declares bankruptcy, will their noncompetes be enforceable?
Unless there is a chapter 7 bankruptcy and the company gets dissolved, yes the post bankruptcy RP will continue to be able to benefit from the contracts the old RP entered into.
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Envision went bankrupt….. Shed a bunch of debt and gave away US Surgical….. Chances are they re-emerge
Rad partners will likely do the same in a similar fashion
Their stock will be worthless and they will just basically employ rads who got alot of their buy out upfront anyway
Rinse-Remove-Repeat
Unfortunately these big employed groups are here to stay because in some parts of the country large healthcare systems want to do business with one large group and Radiologist need the scale of a large organization to provide the coverage. Im sure some areas of the country will be less prone to corporate employed than others largely because of population and locale
Throughout our history you can see that We radiologists are our own worse enemy because we are overall petty, strangely opinionated over meaningless stuff thats out of our control and cant really get along for extended periods of time in order to provide the service
The Diversity thread is a perfect example of radiologists not getting along
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Potential nail in the coffin:
[link=https://news.bloomberglaw.com/antitrust/ftc-expected-to-vote-in-2024-on-rule-to-ban-noncompete-clauses]https://news.bloomberglaw…ban-noncompete-clauses[/link]-
Some radiologists actually can get along (for the greater good of the group), even if they individually dislike or despise each other. It happens all the time. It’s called being a professional and an adult.
An art that seems to be lost today but hopefully will return soon.
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Robotrad,
If there is a republican majority after 2024 — for sure the noncompete ban will pass. Noncompetes by their nature are anti-business.-
Quote from PirateRad
Robotrad,
If there is a republican majority after 2024 — for sure the noncompete ban will pass. Noncompetes by their nature are anti-business.
Huh? Biden was the one who raised non-competes as a problem, and it has generally been the Dems who support banning non-competes, not the Republicans.
From the article that Robotrad posted:
“The proposed rule has garnered support from labor and advocacy groups, along with Democrats in Congress. Industry groups, led by the US Chamber of Commerce, have opposed the rulemaking, [link=https://news.bloomberglaw.com/antitrust/legal-challenges-loom-for-ftcs-proposed-worker-noncompete-ban]arguing[/link] the FTC lacks the proper statutory authority and threatening to sue if its finalized in its current form.”
Republicans are the ones trying to stop the non-compete ban:
[link=https://www.bloomberg.com/news/articles/2023-02-14/house-republicans-challenge-khan-ftc-on-proposed-non-compete-ban#xj4y7vzkg]https://www.bloomberg.com…-compete-ban#xj4y7vzkg[/link]
You have it completely backwards. If the Republicans have a majority in 2024, you can kiss the non-compete ban goodbye.-
Yes
I was thinking the same thing. Its the democrats and Biden administration that want to get rid of non competes
Republicans are fighting them to keep them intact
Another example of republicans not knowing what they stand for – so they vote to F themselves in the arse
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Quote from Robotrad
Potential nail in the coffin:
[link=https://news.bloomberglaw.com/antitrust/ftc-expected-to-vote-in-2024-on-rule-to-ban-noncompete-clauses]https://news.bloomberglaw…ban-noncompete-clauses[/link]
Some states already don’t have non-competes. I don’t see them being a deterrent to corporate practice.
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Quote from kpack123
Envision went bankrupt….. Shed a bunch of debt and gave away US Surgical….. Chances are they re-emerge
Rad partners will likely do the same in a similar fashion
Their stock will be worthless and they will just basically employ rads who got alot of their buy out upfront anyway
Rinse-Remove-Repeat
Unfortunately these big employed groups are here to stay because in some parts of the country large healthcare systems want to do business with one large group and Radiologist need the scale of a large organization to provide the coverage. Im sure some areas of the country will be less prone to corporate employed than others largely because of population and locale
I’m guessing that most rads that are currently working for RP are not legacy partners and never received any upfront buy-put to make up for their current low compensation/wRVU. With that said, these rads continue to work for RP. I wonder if RP declares bankruptcy, could they maintain their current pay-rate to employed rads?
Many legit PP are being forced to give better deals to FT off-site telerad positions. I guess this potentially could attract RP rads that are geographically stuck but who knows-
I heard that non-compete ban was going to exclude doctors, but I cant remember where I read that or if its actually true
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I have not heard that one
Not saying it is or isnt true but How would that even be possible?
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nm, covered elsewhere
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[link=https://news.bloomberglaw.com/bankruptcy-law/radiology-partnerss-lenders-seek-counsel-as-debt-wall-looms]https://news.bloomberglaw…sel-as-debt-wall-looms[/link]
Quote from Bloomberg Law
[b]Radiology Partnerss Lenders Seek Counsel as Debt Wall Looms[/b][/h1]
Some lenders to Radiology Partners are consulting with lawyers at Gibson Dunn & Crutcher to explore its options ahead of looming debt maturities, according to people with knowledge of the situation.
The ad hoc group holds more than 50% of Radiologys term loan, said the people, who asked not to be identified because the matter is private.
Radiology Partners, a group of radiology practices, has a $440 million revolver due in November 2024, which will become current in about six months. It then has a $1.6 billion term loan and $800 million of secured notes maturing in July 2025.
Full article is behind a paywall, but the big bond holders of RP are seeking legal representation in expectation of a distressed exchange or chapter 11 bankruptcy.
Waduh_Dong is this a good thing or a bad thing for RP? Are they still going to Transform Radiology?-
Ok, fair enough. Not looking so hot.
Ultimately, this will probably be fine for the Rads, unless they put a lot money in the stock.
This is an example of the real idiosyncratic risk of investing in individual stocks and why diversifying is a good idea.
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You guys know the private equity playbook right? If they can they will restructure and jettison some debt and other obligations. One of those obligations is the funny money shares that many scumbag RP rad employees currently hold. Question is will these scumbag rads take it in the pooper and still crawl back to work for their overlords or will they finally grow a pair and cut their losses. If the latter, RP is finished.
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Looks like the House of Cards is totally and completely falling apart and FAST!
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Just so everyone knows. Non competes are not enforceable in CA in any industry. They may have had you sign one, but it is not enforceable in California.
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Could someone list as many hospitals/practices that RP is contracted with? Possibly pp groups or individual rads can approach the facilities now contracted with RP, and hasten their release from this failing private equity shell game company.
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existing thread on the Biden administration and noncompetes
[link=https://www.auntminnie.com/Forum/tm.aspx?m=666916&high=biden+noncompetes]https://www.auntminnie.co…high=biden+noncompetes[/link]
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I can’t wait til RP gets F’d in the A
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Quote from Dream Run
I can’t wait til RP gets F’d in the A
RP will be doing the F#$%ing. State pensioners will be receiving. Dream you know the little people always lose in the USA.
Pension managers who bought RP debt- nothing will happen to them.-
Yeah unfortunately this is what happens with PE. They end up farking the employees, pension funds etc. All the PE fatcats have little of their own money on the line and collect big salaries and bonuses until the wheels fall off. Unrelated to this, but I recently read about how they love to take on companies that have company pension obligations. In bankruptcy apparently you can shift the burden to the government who pays the employees a fraction of their pension (up to 70% max I think). They then have another unaffiliated entity buy up the company out of chapter 11 for pennies on the dollar and boom- the money siphon again gets going until ultimately the underlying businese crumbles and goes chapter 7 and sold off for parts.
The only way to prevent these dirtbags from doing this is legislation. PE loves to exploit bankruptcy loopholes. So end those loopholes and also tax their profits normally instead of via the lonngterm capital gains and other financial wizardry they do. I believe some of this was supposed to be handled but there was a dem from somewhere out west who scuttled the deal. Dems and repubs fall into private equity figurehead jobs after office so they dont want to slaughter their cashcow
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One of the founders of RP also foundef davits dialysis. I think that tells you everything you need to know.
If RP rad employees get screwed they only have themselved to blame. They should try to get out now if they can. I personally hope all RP sellouts lose a considerable amount of cash and/or have to uproot and move out of town. They deserve financial stress for helping to destroy our specialty.
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Quote from sartoriusBIG
Yeah unfortunately this is what happens with PE. They end up farking the employees, pension funds etc. All the PE fatcats have little of their own money on the line and collect big salaries and bonuses until the wheels fall off. Unrelated to this, but I recently read about how they love to take on companies that have company pension obligations. In bankruptcy apparently you can shift the burden to the government who pays the employees a fraction of their pension (up to 70% max I think). They then have another unaffiliated entity buy up the company out of chapter 11 for pennies on the dollar and boom- the money siphon again gets going until ultimately the underlying businese crumbles and goes chapter 7 and sold off for parts.
The only way to prevent these dirtbags from doing this is legislation. PE loves to exploit bankruptcy loopholes. So end those loopholes and also tax their profits normally instead of via the lonngterm capital gains and other financial wizardry they do. I believe some of this was supposed to be handled but there was a dem from somewhere out west who scuttled the deal. Dems and repubs fall into private equity figurehead jobs after office so they dont want to slaughter their cashcow
And they get preferred carried interest rates to boot on their gains. I dont know about RP specifically but it wouldnt surprise me if any of their PE backers got all their money out through “special distributions” or dividends from special share classes. Its usually win alot or win a little with these guys while the employees, customers, and govt deal with the wreckage at the end. These guys are the biggest parasites and scumbags around. -
Quote from sartoriusBIG
Yeah unfortunately this is what happens with PE. They end up farking the employees, pension funds etc. All the PE fatcats have little of their own money on the line and collect big salaries and bonuses until the wheels fall off. Unrelated to this, but I recently read about how they love to take on companies that have company pension obligations. In bankruptcy apparently you can shift the burden to the government who pays the employees a fraction of their pension (up to 70% max I think). They then have another unaffiliated entity buy up the company out of chapter 11 for pennies on the dollar and boom- the money siphon again gets going until ultimately the underlying businese crumbles and goes chapter 7 and sold off for parts.
The only way to prevent these dirtbags from doing this is legislation. PE loves to exploit bankruptcy loopholes. So end those loopholes and also tax their profits normally instead of via the lonngterm capital gains and other financial wizardry they do. I believe some of this was supposed to be handled but there was a dem from somewhere out west who scuttled the deal. Dems and repubs fall into private equity figurehead jobs after office so they dont want to slaughter their cashcow
Carried interest was all that was taken off the table supposedly because of Sinema, from AZ.
Congress creates the system, finance bros game it. -
Quote from sartoriusBIG
Yeah unfortunately this is what happens with PE. They end up farking the employees, pension funds etc. All the PE fatcats have little of their own money on the line and collect big salaries and bonuses until the wheels fall off. Unrelated to this, but I recently read about how they love to take on companies that have company pension obligations. In bankruptcy apparently you can shift the burden to the government who pays the employees a fraction of their pension (up to 70% max I think). They then have another unaffiliated entity buy up the company out of chapter 11 for pennies on the dollar and boom- the money siphon again gets going until ultimately the underlying businese crumbles and goes chapter 7 and sold off for parts.
The only way to prevent these dirtbags from doing this is legislation. PE loves to exploit bankruptcy loopholes. So end those loopholes and also tax their profits normally instead of via the lonngterm capital gains and other financial wizardry they do. I believe some of this was supposed to be handled but there was a dem from somewhere out west who scuttled the deal. Dems and repubs fall into private equity figurehead jobs after office so they dont want to slaughter their cashcow
Legislation? You sound like a Democrat. Don’t mess with my “free market.”
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Liberal wants more regulation
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Has the Fed finally taken the wind out of PE sails?
I sense the confidence is not there anymore. -
Yes democrat.
[link=https://jacobin.com/2022/08/democratic-senators-wall-street-donors-private-equity]https://jacobin.com/2022/…-donors-private-equity[/link]
So much for looking out for only the economically disadvantaged.
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How many of those dems will fall into private equity jobs after office? Time will tell.
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Quote from sartoriusBIG
Yes democrat.
[link=https://jacobin.com/2022/08/democratic-senators-wall-street-donors-private-equity]https://jacobin.com/2022/…-donors-private-equity[/link]
So much for looking out for only the economically disadvantaged.
Doubt it was her call. probably decided higher up in the party. She got to take the blame. We will see what her compensation will be.
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Waiting for chirorad or the radical left AM crew to explain dems looking out for private equity interests. Crickets.
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Stop
Asking for handouts and regulations you tranny loving lib -
And yes
Wall Street loves democrats
Thats why the stock markets always do better under democrats
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The only parasites worse than PE guys like RP are the political hacks on both sides of the political spectrum. Maybe the game plan is to polarize social issues while agreeing on how best to get rich and F in the A the working people.
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Quote from Waduh Dong
Ok, fair enough. Not looking so hot.
Ultimately, this will probably be fine for the Rads, unless they put a lot money in the stock.
This is an example of the real idiosyncratic risk of investing in individual stocks and why diversifying is a good idea.
WD, you seem to really “get it” so why the affinity for RP/private equity? Off the top of my head their underlying value system (eg. make as much profit regardless of quality/negative repercussions) seems counter to core principles of Stoicism (temperance/wisdom), and Buddhism/mindfulness (greed/attachment)-
I do not have an affinity for them but I also don’t have the extreme vitriol some of the other posters do on here. To be honest, I aim glad to see the vitriol as it means there are passionate people out there who care a lot about the field of Rads. Personally, the concept of the business side of medicine bothers me a lot but let’s be real here… it is a huge business at its core, or at least the hey days of hero surgeons like DeBakey and Cooley and doctors as God like figures (House of God, anyone?) is clearly in the rear view mirror.
We are past peak-medicine as a career in the US…. it is still pretty good, future yet to be determined….
My daughter is a fairly bright kid and I tell her to strongly consider Tech or Finance, since she is strong in math/science. If she wants to do science / medicine, maybe for a hybrid research – clinical position or something…. that at least would be very intellectually stimulating.
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Yea, we should probably quit directing our collective vitriol at each other (and corresponding political leanings) and direct it collectively at those who deliberately threaten our livelihoods; mainly private equity, the government, and Big Tech.
We can also throw in Big Banks, Wall Street, and Big Pharma too just for kicks.
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From a professional standpoint I just try to to do what is right every day
The money sorts itself out
Im sure I could be making more if I tried
But Im happy
The love of my life is happy
And my kids seem happy and well adjusted
So it is what it is
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