Kindred and Select Medical Holdings Corporation Agree to Acquire Hospitals from Each Other

Friday, February 19, 2016

Kindred Healthcare, Inc. announced that it has signed a definitive agreement to sell four of its transitional care hospitals (licensed as long-term acute care and acquire five LTAC hospitals currently operated by Select Medical Holdings Corporation.

Kindred will acquire leased hospitals in Indianapolis, Indiana (45 licensed beds), San Antonio, Texas (44 licensed beds), Houston, Texas (86 licensed beds), Denver, Colorado (28 licensed beds) and Colorado Springs, Colorado (30 licensed beds). Kindred will sell its owned hospital in Cleveland, Ohio (108 licensed beds) and three leased hospitals in Cleveland, Ohio (75 licensed beds), Atlanta, Georgia (72 licensed beds) and Northern Indiana (32 licensed beds) to Select. In connection with these transactions, Kindred will pay approximately $800,000 in additional cash consideration to Select. These transactions are subject to customary conditions to closing, including the receipt of all licensure, regulatory and other approvals. Kindred expects to complete these transactions during the second or third quarter of 2016.

“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 A. Breier, Kindred’s President and Chief Executive Officer. “These transactions allow us to sharpen our focus and enable us to better Continue the Care for our patients throughout a post-acute episode.”

 

Source : businesswire.com