[LoriAnn]

When a healthcare company that bills Medicare/Medicaid or any other private insurance company sells the business, all the debts transfers to the new buyers. That includes known repayments and future repayments that might arise after the sale is completed. That is why there is a very thorough due diligence process before an offer to purchase is put forward. When there is a repayment such as the 340 million dollar amount The Villages Healthcare owes, it is the company that owes the debt, not the owners. The debt will be negotiated in the sale price. It looks like Humana purchased The Villages Healthcare for the 340 million dollar debt repayment plus a 64 million dollar payout totaling 404 million dollars. Considering their total billing a year is around 400 million, the sale is exactly what I would expect for that revenue size. Healthcare business generally sell for one time gross sales. I’ve sold 4 healthcare companies during my 30 year career and each time a 20% indemnity basket was withheld from the sale price for 3 years to cover any insurance repayments that might arise. That is common procedure. All current debt, repayments and future repayments transfer to the new owners. It’s appears to have worked out for everyone. Humana got a thriving medical practice at a fair price, Medicare got their 340 million dollars back, the Morse family got the heck out of healthcare where they didn’t belong and the Patients will continue getting healthcare close to home. Yay for everyone.