Kindred and Select to Buy Hospitals from Each Other

Kindred Healthcare (Kindred; Louisville, KY, USA) has announced that it has signed a definitive agreement to sell four of its transitional care hospitals and acquire five others currently operated by Select Medical Holdings (Select Medical; Mechanicsburg, PA, USA).

Under the terms of the agreement, Kindred will acquire Select Medical long-term acute care (LTAC) hospitals leased in Indianapolis (IN), San Antonio (TX), Houston (TX), Denver (CO), and Colorado Springs (CO). Concomitantly, it will sell its owned hospital in Cleveland (OH) and three leased hospitals in Cleveland (OH), Atlanta (GA), and Mishawaka, (IN) to Select Medical. The Select Medical hospitals have a total of 233 beds, while the Kindred hospitals hold 287 beds. Kindred will also pay approximately USD 800,000 in an additional cash consideration to Select Medical. The transactions are expected to be completed during the second or third quarter of 2016.

Select Medical currently operates 109 LTAC hospitals and 18 acute medical rehabilitation hospitals in 28 states, with a further 1,038 outpatient rehabilitation clinics in 31 states and the District of Columbia, making it one of the largest operators in the United States. Kindred Healthcare provides healthcare services in 2,723 locations in 47 US states, including 95 LTAC hospitals, 18 inpatient rehabilitation hospitals, 90 nursing centers, 20 sub-acute units, and 626 home health, hospice, and non-medical home care sites of service, as well as 101 hospital-based inpatient rehabilitation units and a contract rehabilitation services business.

“These transactions accelerate our efforts to reposition our LTAC businesses in front of LTAC patient criteria, with the goal of improving our long-term growth, profitability and financial position and improving healthcare delivery in our integrated care markets,” said Benjamin Breier, President and CEO of Kindred Healthcare. “These transactions allow us to sharpen our focus and enable us to better continue the care for our patients throughout a post-acute episode.”

Related Links:
Kindred Healthcare
Select Medical Holdings