Kindred Targets More Home Health Acquisitions, Announces New Projects
Kindred Healthcare, Inc. (NYSE: KND) announced today that it has signed into definitive agreements to build and acquire several home health and hospice businesses.
Kindred plans to open a new 120-bed transitional care center in Phoenix, Arizona, on the campus of IASIS Healthcare’s St. Luke’s Medical Center.
The center will specialize in intensive short-term rehabilitation therapy, including cardiac and orthopedic rehabilitation.
Pending certain regulatory approvals, Kindred expects to break ground on the project in the third quarter of 2013, with an opening anticipated for the second quarter of 2014.
The project will be located within the company’s Phoenix integrated care market, in which Kindred currently operates two transitional care hospitals.
The home health and hospice businesses Kindred plans to acquire are located in Texas, within the Houston, Odessa and Big Spring areas.
For the Houston acquisition, Kindred’s subsidiary has signed a definitive agreement to acquire QStaff Home Healthcare and Advanced Care Hospice.
While the terms of the transaction were not disclosed, QStaff is a provider of home health and hospice services that operates one location in the Houston, Texas market and provides services in five counties.
QStaff currently generates annual revenues of approximately $2 million.
As part of the acquisition, QStaff operations will allow Kindred to expand its services in the company’s Houston integrated care market, where it currently operates 13 transitional care hospitals, two inpatient rehabilitation hospitals and one hospital-based acute rehabilitation unit.
This transaction is also subject to certain regulatory approvals and other conditions to closing, with Kindred anticipating the deal to close in the second quarter of 2013.
Kindred’s subsidiary has also signed a definitive agreement to acquire Caring Hearts Home Health, a provider of home health services that operators two locations in Big Spring and Odessa. Caring Hearts currently generates annualized revenues of approximately $1.6 million.
Through its affiliate IntegraCare, Kindred at Home currently provides home health or hospice services in 46 cities in Texas, including the company’s Dallas integrated care market.
The transaction for the Odessa and Big Spring acquisitions is expected to close in the second quarter of 2013.
Following the announcement of these transactions, Kindred also plans to break ground in two integrated care markets in Indianapolis and Las Vegas.
Kindred will break ground Monday, May 6, 2013, on a new 100-bed transitional care center in the Indiana capitol on a site adjacent to St. Francis Health Indianapolis Campus.
The company anticipates opening this facility in the third quarter of 2014.
On May 14, 2013, Kindred plans to break ground on a new 160-bed transitional care center in Las Vegas on a site adjacent to Universal Health Services, Inc.’s Spring Valley Hospital Medical Center, with an opening anticipated for the third quarter of 2014.
“These projects reflect our commitment to growing the company and allow us to continue the expansion of our continuum of post-acute services where we see demand for our services,” said Kindred CEO Paul J. Diaz. “We are excited about the opportunity to expand our growing home health business and better Continue the Care for our patients throughout a post-acute episode as part of our integrated market strategy.”
Written by Jason Oliva