Kindred buys diverse LTC company for $125 million
Provider giant Kindred Healthcare Inc. is expanding its portfolio of long-term care offerings with a $125 million acquisition of Commonwealth Communities Holdings LLC and affiliates.
The Louisville, KY-based provider made the announcement on the eve of its third-quarter earnings report. It earned $16 million, an increase of 5% from the same quarter a year ago, as revenues rose by 11% to $973 million.
Commonwealth's operations span the long-term care spectrum. It owns five freestanding long-term acute care (LTAC) hospitals and one hospital-in-hospital; nine skilled nursing facilities containing 1,316 beds; and four assisted living facilities with a total of 215 beds. Two of these assisted living facilities share campuses with a Commonwealth skilled nursing facility.
"We view the Commonwealth acquisition as a significant opportunity to grow each of our four operating divisions," said Kindred President and CEO Paul J. Diaz.
Kindred also will acquire Commonwealth's right to develop 95 additional LTAC beds in Massachusetts. All of Commonwealth's facilities are in Massachusetts except for two freestanding assisted living facilities in Maine.
Kindred also plans to purchase the real estate associated with four of Commonwealth's freestanding LTAC hospitals.