- Kindred Healthcare will purchase inpatient rehab provider Centerre Health Corp. for $195 million in cash. The deal is expected to close in Q1 2015, pending approval by regulatory agencies.
- Centerre operates 11 inpatient rehabilitation hospitals with 612 beds in partnership with acute care hospital systems; it is also in the process of building two additional hospitals with a total of 90 beds that will open next year and has "a pipeline of additional potential hospitals in various stages of development," according to a Kindred release.
- Centerre's hospitals are located near five of Kindred's "integrated care markets," where the provider is working to create a comprehensive post-acute care service network. The acquisition will make Kindred one of the largest providers of rehab care in the country.
Kindred will establish a cohesive business line for its rehab services, to be called Kindred Hospital Rehabilitation Services; It will operate 384 locations in 36 states, with expected revenues of approximately $578 million. The acquisition adds 1,600 employees to Kindred's operation.
"The addition of the well-respected Centerre locations to our current rehabilitation hospital portfolio strengthens our position as one of the nation's premier providers of inpatient rehabilitation," said Kindred CEO Paul J. Diaz.
Also closing in Q1: Kindred's $719-million acquisition of Gentiva Health Services, struck last month. Despite numerous previous rejections by Gentiva, the deal received unanimous approval from both boards. The combined organization will be the largest operator of long-term acute care hospitals and inpatient rehabilitation facilities in the country, as well as the nation's largest provider of home health, hospice and rehabilitation services. It is estimated that annual revenue will be around $7 billion.