Moves around Healthscope, an Australian for-profit hospital chain, suggest "don't fight, switch."I didn't think things could get stranger than serial ethics abuser Carlyle Group competing against ethically challenged Tenet Healthcare for HealthScope, an Australian for-profit hospital company. Yet, in a "down the Rabbit Hole" move, Bloomberg reported:
A group comprised of Blackstone Group LP, TPG Capital and Carlyle Group, has also made an offer for Tenet, according to a person familiar with the matter.
Carlyle has a long history of "pay to plan" on public pensions, while Tenet has numerous settlements, including a $900 million fine to Medicare/Medicaid.
They share more than a sordid ethics record. Tenet and Carlyle affiliate LifeCare combined for 35 patient deaths in Memorial Medical Center after Hurricane Katrina. Here's the odd thing. The Bush White House made no mention of Memorial Medical Center in its Lessons Learned report.
Who omits the hospital with the highest patient death toll from a disaster investigation? Frances Townsend did in a corporate risk management move. I'm sure Carlyle and Tenet were grateful.
Tenet lobbied the White House on corporate governance in early 2006. One year after Bush's whitewash was foisted on the public, Jeb Bush landed a high paying Tenet board slot.
Should Carlyle et al buyout Tenet, Jeb Bush will benefit financially. I'll wait for details of the deal before calculating Jeb's possible take.
Private equity underwriters (PEU's) interest in hospitals is clear. PEU's are known for making a killing.
Update: HealthScope threatened to block due diligence for Carlyle & company's shenanigans. Tenet Healthcare dropped out of bidding for Healthscope.
