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Originally Posted by jimbomaybe
Perhaps you knowledge can inform my lack ? Who would buy a failing business without examining the books ?
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As best as I can tell, Centerwell (Humana) is willing to pay $50 million for essentially taking over the 55 thousand Villages Health patients. That is essentially the only asset they will be purchasing, since there won’t be any tangible assets remaining after the creditors bankruptcy claims. My guess is that Humana would back out in a heartbeat if the bankruptcy court attaches any of TVH’s unsettled liabilities to the sale. Another concern would be if Florida Blue’s objection is honored by the bankruptcy court, which would be to void the assignability of their MA contracts if TVH does not make good on the over billing associated with their contracts. Humana must believe that after shelling out $50 million upfront, they can generate enough future profit providing health care to TVH’s 55 thousand patients, using CMS compliant billing, to meet their hurdle internal rate of return. Humana obviously believes they can operate more cost efficiently than TVH, or they wouldn’t want to take on the acquisition risk.