Reports: Humana-Kindred merger on the table

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Editor's note: The parties involved with this deal announced this morning that it will, in fact, take place. Check back at mcknights.com for continuing developments on this story.

Humana Inc. is in talks with two private-equity firms to buy Kindred Healthcare, according to at least two reports.

Earlier this year, Kindred spun off much of its long-term care arm — including nearly 90 remaining skilled nursing facilities — in a series of cash transactions totaling about $700 million.

But in the prospective deal, reported first by The Wall Street Journal on Sunday, equity partners Welsh Carson Anderson & Stowe and TPG would take over Kindred's remaining facility-focused business, which includes long-term acute-care hospitals and rehabilitation centers.

The two firms would join with Humana to take over Kindred's home- and hospice-care operations, which is the country's largest home-health and hospice operator.

Reuters confirmed the same details with its sources Sunday, reporting that Humana has been “investing significantly” in its home health line, marketed as Humana At Home. The wire service said a deal could be finalized as early as this week.