Kindred Healthcare To Acquire RehabCare for $900 Million Creating the Largest Post Acute Care Conglomerate in the US
Posted Feb 08 2011 2:44am
Here we go with more mergers and acquisitions and it’s getting hard to keep up with all the action at times. Back in August of 2010 Kindred purchased 5 hospitals in southern California and 3 nursing home centers. Falling health-care reimbursement rates were cited as part of the reason for the the deal. By combining technologies and facilities they can use RehabCare for patients leaving a Kindred hospital. BD
From the Kindred Website:
“Kindred Healthcare, Inc. is a healthcare services company that through its subsidiaries operates hospitals, nursing centers and a contract rehabilitation services business across the United States. At December 31, 2009, our hospital division operated 83 long-term acute care (“LTAC”) hospitals (6,580 licensed beds) in 24 states. Our health services division operated 222 nursing and rehabilitation centers (27,523 licensed beds) in 27 states. We also operated a contract rehabilitation services business that provides rehabilitative services primarily in long-term care settings.Our company stock is traded on the New York Stock Exchange under the ticker symbol KND.”
From the RehabCare Website:
“At a Glance: Established in 1982, RehabCare Group, Inc. (NYSE: RHB) is a leading national provider of post-acute services, managing rehabilitation programs in partnership with over 1,270 hospitals and skilled nursing facilities in 42 states. We also own and operate 35 long-term acute care and rehabilitation hospitals.
Our Skilled Nursing Rehabilitation Services division serves skilled nursing and other long-term care facilities by providing and managing therapy services for both the short-stay patient and long-term care resident. The division also provides consulting and billing services for long-term care providers through our subsidiary Polaris Group, as well as therapy/nurse staffing solutions for the state of New York through our VTA Management Services company.
Our Hospital Rehabilitation Services division manages hospital-based inpatient rehabilitation facilities (IRFs), medical/surgical therapies and outpatient therapy programs. The division also provides subacute care for patients with complex medical conditions in the State of California through our subsidiary VitalCare America.”
Kindred Healthcare Inc. is expected to announce the acquisition of RehabCare Group Inc. for about $900 million in stock and cash on Tuesday in the latest industry merger driven by relentless cost-cutting by both government and private health insurers.
The deal will combine Louisville, Ky.-based Kindred, which runs or services nearly 700 hospitals, nursing and rehabilitation clinics, with St. Louis, Mo.-based RehabCare, which owns and operates 34 facilities while also managing rehab services in more than 1,250 locations across the U.S.
RehabCare owners are expected to receive $35 for each of their shares, $26 of it paid in cash with the remainder in Kindred stock.
Acute conditions are those that are considered to be life-threatening, and post-acute facilities are intended to support a patient who has left a hospital.
After leaving a Kindred acute-care hospital, for instance, patients may be able to do rehab work at a RehabCare facility. This treatment would be coordinated by Kindred doctors over a number of years, relying on new information technology and databases to measure progress.