Sunday, November 7, 2010

Heads Roll at HealthScope under Carlyle & TPG

The top three positions at HealthScope will change under The Carlyle Group's and TPG's ownership.  Months ago, CEO Bruce Dixon extolled the virtues of private equity underwriters (PEU's).  He said:

"It's good timing for the group to go private and be off the front pages for a while, while we try to grow," he said.

"The benefit of private equity is . . . you can fast-track things without upsetting investors."
Apparently,  a PEU benefit is upsetting current leadership.  In addition to Dixon, HealthScope will get a new COO and CFO.  Did leadership get a look at EBDITA targets in light of increased interest expense, transaction and annual management fees?  HealthScope executives should understand a bleeding, even pathology, which PEU's have in spades.