It's the second time in four years that Kindred has been sold.
LifePoint Health has entered a "definitive agreement" to buy specialty and long-term care provider Kindred Healthcare, the two for-profit health systems announced jointly on Monday.
Financial terms of the sale were not disclosed.
LifePoint said it will provide details of the transaction in "the near future," but stressed that the acquisition is not funded by money received under the Coronavirus Aid, Relief and Economic Security (CARES) Act and other federal legislation.
The sale is expected to be finalized by the end of 2021.
It's the second time in three years that Louisville, Kentucky-based Kindred has been sold.
In 2017, Humana Inc. and private equity firms TPG Capital and Welsh, Carson, Anderson & Stowe aquired Kindred and split the company in two, with Humana becoming a minority investor in the Kindred at Home business, and the private equity firms acquiring the long-term care and rehab hospitals.
LifePoint President and CEO David Dill called the Kindred acquisition "one of the most significant demonstrations, in our company’s history, of LifePoint’s commitment to our deeply rooted mission of Making Communities Healthier."
"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," Dill said.
Kindred CEO Benjamin A. Breier called the sale "a validation of Kindred's success."
"Over the last several years, we have transformed Kindred into the nation's leading specialty hospital company, known for improving outcomes and providing compassionate care for the most medically complex patients," Breier said. "LifePoint’s investment in Kindred underscores the outstanding reputation our team has built upon a foundation of innovation, and clinical and operational expertise."
Brentwood, Tennessee-based LifePoint operates 89 community hospitals in 29 states.
Kindred operates 62 long-term acute-care hospitals, 27 inpatient rehabilitation hospitals, and two behavioral health hospitals in 16 states.
“This combination with LifePoint, one of the leading community healthcare companies in the United States, is a validation of Kindred’s success.”
Benjamin A. Breier, CEO, Kindred Healthcare
John Commins is the news editor for HealthLeaders.
KEY TAKEAWAYS
The deal is expected to be finalized by the end of the year, and LifePoint said additional details on the transaction would be forthcoming.
In 2017, Humana Inc. and private equity firms TPG Capital and Welsh, Carson, Anderson & Stowe aquired Kindred and split its home-health and hospital businesses.
The consortium split the company in two, with Humana becoming a minority investor in the Kindred at Home business, and the private equity firms acquiring the long-term care and rehab hospitals.
Brentwood, Tennessee-based LifePoint operates 89 community hospitals in 29 states.
Kindred operates 62 long-term acute-care hospitals, 27 inpatient rehabilitation hospitals, and two behavioral health hospitals in 16 states.