Private equity used the same play against Red Lobster. Sell off all the land (to their other company), charge enough rent to possibly bankrupt the initial company, and either they find a way to pay it (usually enshittification) or they don't. Either way, money is extracted and others are left holding the literal bills.
And the responsibility - its going to stain the resumes of the higher management of the victim company that they had a good company and it deteriorated under their management.
Fuck, seems like the only way to guard against these takeover-enshittify attacks is to never go public or take anybody elses money - and in that case they'll just fuck your competitor, use them to undercut you and take your clients and run you out of business, and then run THEM to the ground.
By the way, United Healthcare plays similar games. Per the ACA, health insurance profits are capped at 15%. So they vertically integrate. A good chunk of their "in network" providers are UHC paying themselves in one way or another.
The company I got laid off from was owned by private equity. They insisted we spend a shitton (as in, a literal multimullion dollar contract) with another company they own that does data processing, but the best part is absolutely nobody seemed to know exactly what data they were supposed to be finding what information in so it was just call after call of people kicking it around management failing to give actual direction for the project
That makes no sense. How can an entity own the hospital, sell the land and then charge the hospital it owns rent?
Here’s what really happened. https://www.axios.com/2024/03/06/hospital-debacle-private-equity-cerberus-steward
Still shit? Abso-fucking-lutely! But it’s actually real and makes sense.
But that says the same thing, just in more detail.
In 2016 it signed a $1.25 billion sale-leaseback agreement for its Mass. properties with a publicly traded firm called Medical Properties Trust.
For example, it's stopped paying vendors and owes at least $50 million in back-rent to MPT.
Looks like more Luigis are needed.
VultureVenture Capital is ripe for adjusting
In case people don't know, Cerberus is very politically connected to the Republican party. Dan Quale is high up in it and Trump is planning to appoint the CEO to Deputy Secretary of the DoD.
Evil motherfucking trash.
Evil motherfucking trash™
FTFY
How depressingly fitting for a healthcare profiteering company to be named after the two-faced* beast guarding the entrance to hell 😮💨
*technically
twothree-HEADED, but that's not a common euphemism for being a liar 🤷Doesn't Cerberus have 3 heads?
So it does. Dammit! 😄
Like Palantir.
My former FIL is a doctor. He and a couple of partners built a small clinic. As the business grew my FiL started slowly buying all the buildings and lots on the whole block and ended up buying the clinics building from the former owner. As the clinic grew into a hospital he would rent out the spaces to his own business until it was so big they just build a whole new hospital building from scratch...but the land is still his. Now even if he up the cost of rent the partners can't do anything because they have a brand new hoapital built on top of it. This guy is a mastermind he played everyone perfectly. Also he came from poverty. Not normal poor...he was homeless poor when he was young. The guy went through medical school working his ass off and is now a multimillionaire!
Edit: why are you downvoting me? lol I'm not the one doing it, not even part of that horrible family anymore. I'm just teling a story
He knows how bad it is and still became a parasite.
Oh for sure. You don't ger that rich by just working. His partners in the hospital are 2 nice man that are not even close to as rich as he is. They are confortable but no rich. This guy is a textbook sociopath, he knows how to play and plays everyone like Slash would a guitar. And he is sooo nice all the tine. I'm super afraid of him, I think he would kill his son if he needed
Someone needs to be visited by some Xmas ghosts.
The barbarians are in the gates. RIP Blue Star airlines
