LOUISVILLE, Ky. & LITTLE ROCK, Ark.--(BUSINESS WIRE)--Jun. 20, 2016--
Kindred Healthcare, Inc. (“Kindred” or the “Company”) (NYSE:KND) and the
Arkansas Department of Health (“ADH”) today announced that the parties
have signed a definitive agreement for Kindred to acquire the in-home
health care operations (the “Agency”) from ADH, which includes licenses
to provide home health, hospice and personal care services throughout
the state of Arkansas, for approximately $39 million. Kindred reached an
agreement with ADH following a state bidding process. The transaction is
expected to close in the third quarter of 2016, pending several
regulatory and other approvals.
The transaction will expand Kindred’s services from six offices
providing home health and hospice in four counties to offices providing
home health, hospice and personal care services in 70 of the 75 counties
in Arkansas. In the transaction, Kindred will acquire the Agency’s 74
home health locations serving 69 counties in Arkansas, seven offices
providing hospice services in 42 counties and its personal care services
business that assists patients with activities of daily living. As part
of the agreement, Kindred agreed to retain all current employees and
agreed to serve all current patients upon consent.
“This transaction provides a tremendous opportunity to expand our
Kindred at Home operations in Arkansas,” said
Benjamin A. Breier
,
Kindred’s President and Chief Executive Officer. “As the national leader
in home health and hospice, we are excited to bring in our care and
clinical protocols to these operations to improve the ability of
patients to safely return home or to remain in their home. We look
forward to the Agency’s caregivers joining our team and believe we can
provide our new colleagues with enhanced opportunities for professional
growth and development.”
“I am very pleased that we have been able to identify an organization
like Kindred that is committed to providing high quality care to our
patients and is eager to bring our in-home health care staff on board,”
said
Nathaniel Smith
, MD, MPH, Director of the Arkansas Department of
Health and State Health Officer. “The agreement we have signed will help
to assure sustainability of services to our patients and allow the
private sector to take over where the state has begun.”
“This is a success for the state of Arkansas,” said
Asa Hutchinson
,
Governor of Arkansas. “We are not in the business of competing with the
private sector. The Arkansas Department of Health provided an important
service while it was necessary, and now private sector companies can
fill this need. I am pleased that Kindred Healthcare will continue the
excellent work of the ADH In-Home Services program.”
About Kindred Healthcare
Kindred Healthcare, Inc., a top-90 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 March 31, 2016, Kindred through its subsidiaries had approximately
102,000 employees providing healthcare services in 2,700 locations in 46
states, including 95 transitional care hospitals, 19 inpatient
rehabilitation hospitals, 92 nursing centers, 20 sub-acute units, 618
Kindred at Home home health, hospice and non-medical home care sites of
service, 104 inpatient rehabilitation units (hospital-based) and a
contract rehabilitation services business, RehabCare, which served 1,752
non-affiliated sites of service. Ranked as one of Fortune magazine’s
Most Admired Healthcare Companies for seven 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.
______
(1)
Revenues based upon Kindred consolidated revenues for the twelve
months ended March 31, 2016.
About the Arkansas Department of Health (ADH)
ADH is a centralized health department, operating health units in each
of the state’s 75 counties. ADH works to protect, improve and promote
the health of all Arkansans with the support of dedicated employees and
public and private partners. Each year, Department employees monitor and
investigate public health diseases and threats, provide preventive
health services in clinical settings, enforce laws and regulations,
support Hometown Health Improvement, promote healthy behaviors and
respond to public health emergencies.
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, 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 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K filed with the Securities and Exchange
Commission.
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.
Source: Kindred Healthcare, Inc.
Kindred Healthcare
Susan E. Moss, 502-596-7296
Senior Vice
President,
Marketing and Communications
susan.moss@kindred.com
or
Arkansas
Department of Health
Meg Mirivel, MA, 501-280-4768
Public
Information Officer
Office of Health Communications
margaret.mirivel@arkansas.gov