Millennium $1.8 Billion Dollar Loan Downgraded???

Is anyone asking the question of why a company who made so much money on overpriced testing also has an outstanding $1.8 billion dollar loan issued in 2014?

Does anyone know what the proceeds of the loan were used for? or who they went to? It didn't go to the employees...

https://www.moodys.com/research/Moo...-Millennium-Labs-sr-secured-credit--PR_295965

http://www.bloomberg.com/news/artic...unges-as-lab-tester-negotiates-u-s-settlement

 

My firm is an investor in that bank deal. I could give specific numbers, but I don't want to violate any private v. public type of data.

In order of portion size:
1 The VAST majority of the loan was to fund a mega distribution to shareholders
2 refinance of an older term loan
3 Convert / take out TA debentures (not sure what this is)
4 fees/expenses (admin/bank fees to set up the deal)

 

And "shareholders" mostly = Jim Slattery

wonder if the feds will go after his airplane collection:

http://www.utsandiego.com/news/2013/jan/15/businessman-brings-WWII-plane-home/

http://www.kitsapsun.com/news/local-news/medical-executive-to-build-corporate-hangar-at

 

Holy crap! That makes sense.

So when Slattery stepped down, he took a $1.8B payday to relinquish his ownership share of MH? They actually had to borrow money to send him out the door?

Wow. Must be nice

 

If he was paid to "leave" why does he still run everything behind the scenes? Sources say upper management (minions really) can't seem to make a move without his approval because "it is still HIS company". It must be nice-he got the payoff AND retained control. One can only hope every governing agency that can go after him, will.

Do the employees know they are working for such a greedy individual?

 

I'm sure king james is getting his share, but TA Associates is the major receiver being the private equity firm that owns Millinnium.

This is just wallstreet at it's finest. Let's leverage the F$$$ out of a company so we can enjoy our dividends.
http://www.ta.com/Investments/Portfolio/Current-Portfolio.aspx

 

What does The Slattery Family Foundation do? Anyone know?

 

Apparently it doesn't do much. It has 52 million and in this report didn't pay out to anything. Maybe King James will meet the same fate as Al Capone and get taken down by the revenuers

http://nonprofits.findthecompany.com/l/1683597/Slattery-Family-Foundation

Low Grant Payout Ratio
Slattery Family Foundation did not pay out any of its endowment to charitable grants in the fiscal year ending December 2012. Foundations this size typically spend about 4.80% of their endowment on grants.

 

So I have a friend that is "self-pay". His urine sample was sent to an analyzer at a physicians office that didn't even treat him located in another city 1 hour away. Then his sample was sent to another physicians office another hour away that has an LC/MS machine. His bill for the screen is $400. Who only knows what the bill for his confirmatory test will be. How are physicians with analyzers and LC/MS machines able to get away with these ridiculously high fees when the larger labs charge a fraction of that? Is it possible the physician with the analyzer is a fractional owner with the physician with the LC/MS?

 

One of the most ignorant posts to date.
Larger labs charge a fraction? Yep. Exactly why Millennium is under investigation. The LOW charges. The physician offices that charge this are typically in bed with a confirmation lab that has assisted them with the lab and provided the billing guidance. It is just another area under investigation.

 

The NP status is probably another way of funneling money tax free...

 

I call bullshit.

You have no friends.

 

It was never about the company, it was always about the "family." Individual family members in the inner circle including the godfathers, you 3 know who you are, and VPs like, well we know her too, made out just fine. Numbers, volume, and recognition aren't enough to direct traffic the way they did. They did so because of individual benefit that would not be subject to the 250M. While the gov't gets theirs from the company these individuals, whose plan it was from the start, will be able to keep all their past compensation and equity distributions. Like I said, it was never about the company.

 

Very interesting. From the start, JS was about himself. If the feds failed to look at the lawsuits he used to intimidate other companies and people, they failed to recognized this was a deliberate effort to use people, physicians and patients to pad his wallet. The others went along with the effort and anyone that potentially stood in his way was sued or intimidated.
RICO.

 

I've heard there are field layoffs, what's going on?

 

The entire thread gives an indication of what is going on...

 

Actually this is one of the most ignorant posts to date. Millennium is of the scale of some of the largest reference labs in the country and is in network with most of the large insurance companies - therefore their rates are contracted you idiot.

The true problem in this industry is indeed these doctors - and $400 is low - I have a friend at a large insurance company that pays % of billed charges to out of network labs - he has seen bills in excess of 5k from these doctor owned labs

 

Millennium was the king of legal threats and lawsuits against competitors and really is to blame for the extremely litigious relationships between labs. Surprisingly, the $250M settlement hasn't affected business very much, at least not yet.....

 

This is just not true. Millennium may have had some in network rates but certainly billed outside those rates to keep the reimbursement up. The fact that they averaged around $548 per medicare in 2012 makes your statement ridiculous.

 

First - Medicare is actually a high payer in this space - every provider has Medicare paying more and that is something Medicare is in the process of correcting (as well as making a couple of additional smart policy choices that should help shape this industry)

Second - You do realize that you do not contract with Medicare - there is a fee schedule and you bill Medicare for the tests ordered and the rates that are set in stone. That is a very precise and very incorrect number by the way - so thanks for chiming in with points supported with "false facts"

Lastly - do you know how billing for commercial plans work? If you have a contracted rate, that is what you get paid. Again they are in-network on a very large scale - probably over 2/3 of US lives covered. You can play the out-of-network game (like many of the small labs do today) and get paid a % of billed charges. That is not what Millennium does and their actually reimbursement is, on average, probably half (if not less) of the previously mentioned dated and completely fallacious number you quoted if I had to guess knowing the sector pretty well.

Thank you for polluting the internet with your stupidity