Brookdale Senior Living has sold its 20% stake in the home health, hospice and therapy joint venture it has with Nashville, Tenn.-based HCA Healthcare.
An undisclosed buyer acquired the 20% stake in the joint venture for $27 million, with Brookdale also making significant progress on a financing transaction involving 11 of its currently unencumbered owned communities, which it expects to complete in the coming months, according to a Dec. 27 news release.
"We believe the positive strides we have made in 2023 are reflected in these completed financing transactions, which clear our debt maturities until 2025," CFO Dawn Kussow said. "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."
Brentwood, Tenn.-based Brookdale, which operates and manages 672 senior living communities across 41 states, was one of the largest home health providers in the country, but offloaded that segment as it struggled with occupancy rates in its senior living communities during the COVID-19 pandemic.
In July 2021, the company sold an 80% stake in its hospice, home health and outpatient therapy division to HCA for $400 million.
HCA CEO Sam Hazen saw the partnership as "foundational" to HCA's goal of providing quality patient care, adding that the joint venture will lead to improved care coordination. "Our objective is to be the healthcare system of choice, and the addition of these services to our network of care improves our ability to meet the care needs of our patients," he said.
In November 2021, HCA sold 47 Brookdale Health Care Services agencies — including 23 home health locations, 11 hospice and 13 therapy agencies —- to Lafayette, La.-based home health firm LHC Group.
UnitedHealth Group acquired LHC for $5.4 billion in February 2023.