Kindred’s Home Health Revenue Jumps Ahead of Acquisition
The country’s largest home health provider recorded a slight jump in home health revenue ahead of its planned $4.1 billion sale to Humana Inc. (NYSE: HUM), TPG Capital, and Welsh, Carson, Anderson & Stowe (WCAS).
Specifically, fourth-quarter 2017 revenues in the Kindred at Home (KaH) division of Kindred Healthcare (NYSE: KND) rose 3% year-over-year to $649 million. Home health admissions on a same-store basis increased 1.6%.
Same-store hospice admissions, on the other hand, fell 2% over the prior-year period, according to a Wednesday press release from Louisville, Kentucky-based provider.
By comparison, at Louisville-based Almost Family, Inc. (Nasdaq: AFAM), home health episodic admissions increased 39% in the fourth quarter of 2017 to 29,336. AFAM’s fourth-quarter 2017 home health segment net revenue also rose 35.5% from the fourth quarter of 2016 to $145.1 million.
All the while, Kindred’s scheduled acquisition by a consortium of three organizations is set to result in Kindred’s home health, hospice and community care businesses being separated from Kindred and operating as a standalone company, 40% of which will be owned by Humana.
The acquisition is scheduled to close sometime during the summer of 2018, according to Wednesday’s press release.
“We are confident that the merger will enhance innovation at both the home care and specialty hospital companies, further Kindred’s culture of a patient-first approach to care and create new opportunities for Kindred employees,” President and CEO Benjamin Breier said in the press release.
Kindred’s fourth-quarter 2017 earnings per share of 20 cents beat analysts’ expectations by 2 cents; its fourth-quarter 2017 revenue of approximately $1.5 billion, meanwhile, was in line with analysts’ expectations.
As of market close on Wednesday, Kindred’s share price was slightly down, above $9 price per share.
Written by Mary Kate Nelson