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Kindred and Select Medical Holdings Corporation Agree to Acquire Hospitals from Each Other

LOUISVILLE, Ky.--(BUSINESS WIRE)--Feb. 18, 2016-- Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) today announced that it has signed a definitive agreement to sell four of its transitional care hospitals (licensed as long-term acute care (“LTAC”) hospitals) and acquire five LTAC hospitals currently operated by Select Medical Holdings Corporation (“Select”) (NYSE:SEM).

Kindred will acquire leased hospitals in Indianapolis, Indiana (45 licensed beds), San Antonio, Texas (44 licensed beds), Houston, Texas (86 licensed beds), Denver, Colorado (28 licensed beds) and Colorado Springs, Colorado (30 licensed beds). Kindred will sell its owned hospital in Cleveland, Ohio (108 licensed beds) and three leased hospitals in Cleveland, Ohio (75 licensed beds), Atlanta, Georgia (72 licensed beds) and Northern Indiana (32 licensed beds) to Select. In connection with these transactions, Kindred will pay approximately $800,000 in additional cash consideration to Select. These transactions are subject to customary conditions to closing, including the receipt of all licensure, regulatory and other approvals. Kindred expects to complete these transactions during the second or third quarter of 2016.

“These transactions accelerate our efforts to reposition our LTAC businesses in front of LTAC patient criteria, with the goal of improving our long-term growth, profitability and financial position and improving healthcare delivery in our integrated care markets,” said Benjamin A. Breier, Kindred’s President and Chief Executive Officer. “These transactions allow us to sharpen our focus and enable us to better Continue the Care for our patients throughout a post-acute episode.”

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, the receipt of all required regulatory approvals and the satisfaction of the closing conditions to the transaction discussed above, the Company’s ability to integrate the operations of the acquired hospitals and realize the anticipated revenues, economies of scale, cost synergies and productivity gains, all statements regarding the Company’s expected future financial position, results of operations, cash flows, dividends, financing plans, business strategy, budgets, capital expenditures, competitive positions, growth opportunities, plans and objectives of management, government investigations, regulatory matters, and statements containing the words such as “anticipate,” “approximate,” “believe,” “plan,” “estimate,” “expect,” “project,” “could,” “would,” “should,” “will,” “intend,” “may,” “potential,” “upside,” and other similar expressions. Statements in this press release concerning the Company’s business outlook or future economic performance, anticipated profitability, revenues, expenses, dividends or other financial items, product or services line growth, and expected outcome of government investigations and other regulatory matters, together with other statements that are not historical facts, are forward-looking statements that are estimates reflecting the best judgment of the Company based upon currently available information.

Such forward-looking statements are inherently uncertain, and stockholders and other potential investors must recognize that actual results may differ materially from the Company’s expectations as a result of a variety of factors. Such forward-looking statements are based upon management’s current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control, that may cause the Company’s actual results, performance or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements. These statements involve risks, uncertainties and other factors detailed from time to time in the Company’s filings with the Securities and Exchange Commission.

Factors that may affect the Company’s plans, results or stock price are set forth in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Many of these factors are beyond the Company’s control. The Company cautions investors that any forward-looking statements made by the Company are not guarantees of future performance. The Company disclaims any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments.

About Kindred Healthcare

Kindred Healthcare, Inc., a top-95 private employer in the United States, is a FORTUNE 500 healthcare services company based in Louisville, Kentucky with annual revenues of approximately $7.2 billion(1). At September 30, 2015, Kindred through its subsidiaries had approximately 102,200 employees providing healthcare services in 2,723 locations in 47 states, including 95 transitional care hospitals, 18 inpatient rehabilitation hospitals, 90 nursing centers, 20 sub-acute units, 626 Kindred at Home home health, hospice and non-medical home care sites of service, 101 inpatient rehabilitation units (hospital-based) and a contract rehabilitation services business, RehabCare, which served 1,773 non-affiliated sites of service. Ranked as one of Fortune magazine’s Most Admired Healthcare Companies for six years, Kindred’s mission is to promote healing, provide hope, preserve dignity and produce value for each patient, resident, family member, customer, employee and shareholder we serve. For more information, go to www.kindredhealthcare.com. You can also follow us on Twitter and Facebook.  

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(1) Revenues were computed by combining the twelve months ended December 31, 2014 data for Kindred, Gentiva Health Services, Inc., which was acquired by the Company on February 2, 2015, and Centerre Healthcare Corporation, which was acquired by the Company on January 1, 2015.

Source: Kindred Healthcare, Inc.

Kindred Healthcare, Inc.
Susan E. Moss, 502-596-7296
Senior Vice President, Marketing and Communications