LifePoint Health has agreed to acquire Kindred Healthcare
LifePoint Health to acquire Kindred Healthcare
June 23, 2021
by John R. Fischer
, Senior Reporter
LifePoint Health is aiming to create a more diversified healthcare delivery network by acquiring Kindred Healthcare.
The network will combine Kindred’s expertise in long-term acute care, rehabilitation services and behavioral health services with LifePoint’s national network of community-based hospitals, providers and access points to expand services, resources and expertise that can help both grow and invest more in community healthcare.
“Kindred’s focus on healing and hope, provided through its long-term acute care hospitals, rehabilitation centers, and most recently its behavioral health services — an important and growing need across the country — is highly complementary to the current LifePoint network,” said David Dill, president and chief executive officer of LifePoint.
The deal is expected to create a full range of complementary services for patients; standardize bedside care clinically, quality-wise and compliance-wise; create opportunities to develop and expand critical behavioral health services nationwide; and allow for investments in services and technology in new and existing markets.
LifePoint will also invest $1.5 billion over the next three years to improve care for communities that the combined organization services, including personal and professional growth of its nurses, frontline staff and other employees; capital projects for improving healthcare delivery and increasing access points; and technology, digital solutions and equipment to increase local access to advanced services.
Based in Brentwood, Tennessee, LifePoint has 87 hospitals in 29 states as well as more than 50 affiliated post-acute providers and 35 outpatient facilities. Kindred is based in Louisville, Kentucky and operates 62 long-term care hospitals, 25 inpatient rehabilitation facilities, more than 100 acute rehabilitation facilities and two behavioral health centers.
Supporting their combination is a thesis that predicts that investments in community healthcare and growth result in improved healthcare outcomes and access without increasing costs for patients. The two plan to capitalize on their shared resources and expertise to partner with health systems, payers and other providers who can help expand their services into areas where they do not currently have a stake.
“Kindred and LifePoint have highly complementary capabilities and together we will be poised to further improve patient care across the healthcare continuum,” said Benjamin Breier, chief executive officer of Kindred.
The deal is expected to close in the fourth quarter of 2021, in accordance with regulatory approvals and satisfaction of customary closing conditions. The acquisition is not being financed with funds collected through the Coronavirus Aid, Relief and Economic Security (CARES) Act and related legislation.
No financial details were disclosed.
LifePoint did not respond for comment.