Louisville, Ky.-based Kindred Healthcare has signed a definitive agreement to sell four of its long-term acute care hospitals and acquire five long-term acute care hospitals currently operated by Mechanicsburg, Pa.-based Select Medical Holdings Corp.
Here are six things to know about the transactions.
1. Under the swap arrangement, Kindred will acquire leased hospitals in Indianapolis, San Antonio, Texas, Houston, Denver and Colorado Springs, Colo.
2. In return, Kindred will sell its owned hospital in Cleveland and three leased hospitals in Cleveland, Atlanta and Northern Indiana to Select.
3. Related to these transactions, Kindred will pay approximately $800,000 in additional cash consideration to Select.
4. These transactions are subject to customary closing conditions, including the receipt of all licensure, regulatory and other approvals.
5. Kindred expects to complete these transactions during the second or third quarter of 2016.
6. Benjamin A. Breier, Kindred's president and CEO, spoke positively of the swap arrangement. "These transactions accelerate our efforts to reposition our LTAC businesses in front of [long-term acute care] patient criteria, with the goal of improving our long-term growth, profitability and financial position and improving healthcare delivery in our integrated care markets," he said in a prepared statement. "These transactions allow us to sharpen our focus and enable us to better continue the care for our patients throughout a post-acute episode."
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