LifePoint Health and Kindred Healthcare have entered into a definitive agreement for LifePoint to acquire Kindred Healthcare, according to a news release.
The transaction brings together LifePoint’s national network of community-based hospitals, providers, and access points with Kindred’s expertise in delivering long-term acute care, rehabilitation services and behavioral health services. The go-forward company will be positioned to respond more comprehensively to patients’ needs across the healthcare continuum, guided by LifePoint’s commitment to quality and compliance.
A Complementary Combination
The combination of LifePoint Health and Kindred Healthcare creates a leading community healthcare platform and benefits from:
- A full array of complementary services supporting patients across the healthcare continuum;
- Standardized care at the bedside that advances clinical, quality and compliance excellence;
- Opportunities to develop and expand critical behavioral health services across the country; and
- Investments in services and technology for patients in new and existing markets.
LifePoint expects that the transaction between two companies offering complementary, distinct services will improve healthcare outcomes and access without increasing costs for patients. The combination of LifePoint and Kindred is supported by a thesis predicated on investment in community healthcare and growth – not on cost-savings resulting from bringing the organizations together.
Over the last several years, Kindred has formed joint ventures and partnerships with leading hospitals across the country. This joint venture strategy has enabled Kindred to expand into new geographies, while enhancing access to value-based healthcare services. Together, LifePoint and Kindred will continue advancing this strategy, capitalizing on their combined resources and expertise to partner with respected health systems, payers and other providers to offer services in areas where they do not currently operate, a media release from both companies explains.
“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. We are honored to welcome Kindred’s talented group of employees and providers into the LifePoint family.”
— David Dill, president and chief executive officer of LifePoint
“LifePoint’s investment in Kindred underscores the outstanding reputation our team has built upon a foundation of innovation, and clinical and operational expertise. Kindred and LifePoint have highly complementary capabilities, and together we will be poised to further improve patient care across the healthcare continuum. We are excited to move forward and realize the benefits of this combination for our patients and their families, our joint venture partners, and our team members.”
— Benjamin A. Breier, chief executive officer of Kindred
Investment to Improve Care
LifePoint will invest $1.5 billion over the next three years to improve care for the communities that the combined organization will serve. This commitment includes investments in:
- The personal and professional growth of its employees – especially nurses and frontline staff;
- Capital projects to improve healthcare delivery and increase access points; and
- Technology, digital solutions, and equipment to increase local access to advanced services.
The transaction is expected to be completed in the fourth quarter of 2021. In advance of completing the transaction, LifePoint anticipates providing additional detail regarding the contemplated transaction, financing, organizational structures, and go-forward opportunities for the teams in Brentwood, Louisville, and at LifePoint and Kindred facilities across the country.
The acquisition is not being financed with any funds that have been received as a result of the Coronavirus Aid, Relief and Economic Security (CARES) Act and related legislation, per the release.
[Source(s): LifePoint Health, Kindred Healthcare, Business Wire]
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