LOUISVILLE, Ky. & LITTLE ROCK, Ark.--(BUSINESS WIRE)--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.
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| (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.
