- Kindred Healthcare Inc., the nation's largest home healthcare and hospice provider, is set to acquire the home healthcare operations of the Arkansas Department of Health.
- The $39 million purchase was made through a state bidding process, and is projected to close in the third quarter of this year following regulatory approvals.
- Kindred's operations in Arkansas will expand from four counties to 70 through the deal. The state has a total of 75 counties.
Kindred's specific acquisitions will include the state's 74 home health locations, seven offices providing hospice services, and its personal care services, the company said. It noted that as part of the agreement, Kindred will be retaining all current employees and patients upon consent.
The move follows Kindred's massive 2015 acquisition of Gentiva Health Services Inc. for $1.8 billion as it works to expand its home healthcare business, Louisville Business First reported.
Kindred's timing positions it to take advantage of the tremendous growth the home healthcare industry expects to see in the immediate future. The global home healthcare market was projected to grow at a compound annual growth rate (CAGR) of 8.85% by 2020 in a recent analysis by Sandler Research.
That growth will be fueled by an aging population, increases in chronic disease, advancements in technology, and the demand for affordable healthcare alternatives in the face of rising healthcare costs.