Brookdale Senior Living (NYSE: BKD) has sold its 20% stake in the home health, hospice and therapy joint venture it has with HCA Healthcare (NYSE: HCA).
The company announced the news Wednesday, but did not specify who it sold the remaining stake to. It did announce the price tag, however, which was $27 million.
In tandem with that news, it announced that it has also completed two financing transactions, which “refinanced all of its remaining 2024 debt maturities.”
“We believe the positive strides we have made in 2023 are reflected in these completed financing transactions, which clear our debt maturities until 2025,” Brookdale CFO Dawn Kussow said in a statement. “The ongoing proactive management of our liquidity position, including these completed and pending transactions, together with Brookdale’s solid improvement in operating results, support our continued strong liquidity position.”
Brookdale used to be one of the largest home health providers in the country. During the pandemic, however, it decided it would be advantageous to offload that segment as it struggled with occupancy rates in its senior living communities.
Based in Brentwood, Tennessee, the company operates and manages 672 senior living communities in 41 states.
Prior to the original sale of the majority of its home health and hospice business to the large health system HCA Healthcare for $400 million in 2021, it operated nearly 60 home health agencies and almost two dozen hospice agencies.
What materialized from that was a HCA-Brookdale joint venture made up of those assets. Then, later on in 2021, LHC Group – which is now a part of UnitedHealth Group’s (NYSE: UNH) Optum – acquired the home health, hospice and therapy assets of that JV in 22 states.
Specifically, LHC Group acquired 23 home health locations, 11 hospice agencies and 13 therapy businesses.
“This just made sense for all three parties involved,” LHC Group Chairman and CEO Keith Myers told Home Health Care News at the time. “That includes Brookdale. They wanted to have a high-quality home health provider serving their residents, so they can keep their residents healthy and [out of the hospital].”
In 2022, amid a stock price downturn, Brookdale was reportedly considering a sale of the entire company. To this point, none of those rumors have come to fruition.
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