Kindred Healthcare selling long-term care hospitals
LOUISVILLE, Ky. (AP) — Kindred Healthcare announced it has signed an agreement to sell 12 long-term acute care hospitals to Curahealth LLC for $27.5 million.
Kindred President and CEO Benjamin A. Breier said in a statement Monday that the transaction creates both strategic and financial value for the Louisville-based health care giant.
The hospitals have 783 beds in six states: Arizona, Louisiana, Massachusetts, Oklahoma, Pennsylvania and Tennessee.
Breier said optimizing Kindred’s long-term acute care (LTAC) hospital portfolio “is a key element of our LTAC criteria mitigation strategy and this transaction is another important step forward in our efforts.”
Curahealth is an affiliate of a private investment fund sponsored by Nautic Partners, which Breier said has a successful track record in health care. For the full fiscal year 2016, Kindred projects the hospitals will generate combined revenues of approximately $215 million and earnings before interest, income taxes, depreciation and amortization at approximately break even.
Kindred expects to realize cash proceeds after the closing of about $21 million, pending post-closing adjustments. The remainder of the purchase price would be paid upon satisfaction of financial and other post-closing conditions.
According to the statement, officials expect the deal with Curahealth to close in the third quarter of this year.