The Latest in Finance from CFO

Kindred Healthcare, the largest U.S. nursing home therapy provider, has agreed to pay $125 million to settle federal charges that it provided unreasonable and unnecessary services to patients to inflate Medicare billings.

In announcing the settlement, the Department of Justice said Tuesday that Kindred’s RehabCare unit had a policy of setting unrealistic financial goals and scheduling therapy to achieve the highest reimbursement level regardless of the clinical needs of its patients. Read more.

American Airlines on Tuesday said it would take a $592 million write-off in its fourth quarter on the Venezuelan currency it holds due to the continued economic deterioration in that country. The Fort Worth, Texas-based airline is the latest multinational company to be affected by the fall in the bolivar, which is down sharply against the U.S. dollar this year, according to The Wall Street Journal.

A Reuters article said that the South American country’s socialist government had compelled carriers to sell tickets in bolivars but made reconverting the sales into U.S. dollars difficult. Globally, airlines have around $3.7 billion trapped in Venezuela as a result of its 12-year-old currency control system, according to the International Air Transport Association. Read more.

 

Alcoa Swings to Loss on Restructuring Costs

The company’s revenue took a hit from sharply lower aluminum prices as it prepares to split into two standalone entities.

Matthew Heller

 

BP to Lay Off About 4,000 Workers

The industry may have more capacity to cut as some analysts are projecting depressed crude oil prices through 2016.

Katie Kuehner-Hebert

 

Enterprise Tech Agenda: 2016

Data icebergs, drones, augmented reality, information on everything, the API economy — it should be a fascinating year.

John Parkinson

 

Carl Berquist, Retiring as Marriott CFO, Reflects on Two Careers

After 28 years with Arthur Andersen and 14 with Marriott, the acquisition of Starwood Hotels serves as a resounding last hurrah.

David McCann

 

American Airlines to Take $592M Currency Charge

Globally, airlines have around $3.7 billion trapped in Venezuela as a result of its 12-year-old currency control system.

Katie Kuehner-Hebert

 

VC Firms Report Another Strong Fundraising Year

Dollar commitments hit $28.2 billion, well above the annual average since 2006, said Thomson Reuters and the NVCA.

Matthew Heller

 

Chicago Issues Debt to Cover Pension Shortfall

Katie Kuehner-Hebert

 

Kindred Healthcare to Pay $125M Over Medicare Fraud

Patients “are entitled to receive care that is dictated by their clinical needs rather than the fiscal interests of healthcare providers,” said the DoJ.

Matthew Heller

 

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