Kindred Sells Seven Nursing Centers for $47M, Creates Transitional Care Division
Kindred Healthcare, Inc. (NYSE: KND) announced Wednesday that it has sold seven nursing centers for approximately $47 million to affiliates of Signature Healthcare, LLC.
The nursing facilities contain 900 licensed beds, with five of the facilities owned and the remaining ones leased.
Together, the facilities generated revenues of $63 million and earnings before interest, income teas, depreciation and amortization of approximately $7 million for the year ended December 31, 2012.
The facilities also had an aggregate rent expense of $2 million for the year ended December 31, 2012.
Each of the “non-strategic” nursing centers is located outside of Kindred’s 21 designated Integrated Care Markets, and the company intends to use the net proceeds from the transaction to pay down the outstanding balance under its revolving credit facility.
As of March 31, 2013, the outstanding balance on Kindred’s $750 million revolving credit facility approximated $350 million.
“We are pleased to complete this tax-efficient transaction, which further accelerates our repositioning strategy with the goal of improving our long-term growth, profitability and financial position,” said Kindred CEO Paul J. Diaz.
“We will continue to sharpen our focus on our Integrated Care Market strategy that enables us to better Continue the Care for our patients and provide high-quality clinical outcomes throughout an entire post-acute episode,” Diaz added.
Managing patients’ care across the post-acute continuum looks to gain greater traction with the company’s newly created Care Management Division, which Kindred announced Thursday.
The purpose of Kindred’s Care Management Division will be to “develop programs that will enable the company and its partners to better manage episodes of care, while also creating more seamless transitions between care settings and improve patient satisfaction,” Kindred said in a release.
The results of these efforts, Kindred hopes, will help reduce the lengths of stay and rehospitalizations at a lower cost to Medicare and other payors.
The Care Management Division will include Kindred at Home, and will also be responsible for expanding the business, as well as leveraging the company’s home care, hospice and palliative care offerings to support integrated care delivery.
Kindred has appointed Jon B. Rosseau as President of its newly announced Care Management Division.
Rosseau was formerly Vice President of Global Marketing and Vice President of North America Marketing for Mylan Inc., a publicly traded pharmaceutical company, where he led commercial, development and strategy initiatives in multiple senior leadership roles.
Previously, Rosseau worked for Medtronic, Inc., a leading medical device maker, where he was Global Senior Director for the Continuous Glucose Monitoring franchise and led business development activities for a large division within the company.
“As care management is a cornerstone to any successful patient-centered healthcare delivery system, Jon will be instrumental in preparing Kindred for future delivery and payment models and ensuring we are able to deliver on our promise of hope, healing and recovery,” said Benjamin A. Breier, Kindred’s president and chief operating officer.
Kindred, a Fortune 500 healthcare services company based in Louisville, Kentucky, reports annual revenues of $6 billion and approximately 76,000 employees in 46 states.
As of March 31, 2013, Kindred through its subsidiaries provided healthcare services in 2,169 locations, including 116 transitional care hospitals.
Written by Jason Oliva