LifePoint Health Announces Plans to Acquire Kindred Healthcare
As part of the health system merger deal, LifePoint would also invest $1.5B over the next three years to advance care delivery in the communities it serves.
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By - LifePoint Health is seeking to bolster its post-acute care network by acquiring Louisville, Kentucky-based Kindred Healthcare in a health system merger deal slated to close at the end of this year.
The two organizations entered a definite agreement earlier this week that would bring Kindred Health’s range of facilities, including long-term acute care hospitals, inpatient rehabilitation hospitals, acute rehabilitation units, and its behavioral health unit, under the LifePoint Health umbrella.
The deal would “create a leading diversified healthcare delivery network with expanded services, resources, and expertise to grow and invest in community healthcare while advancing LifePoint’s mission of Making Communities Healthier,” the organizations said in the joint announcement.
LifePoint Health is a healthcare company headquartered in Brentwood, Tennessee. The company operates community hospitals, regional health systems, physician practices, outpatient centers, and post-acute facilities across the country. Making Communities Healthier is a trademarked initiative that aims to improve patient outcomes while ensuring the success of provide organizations.
The organizations did not disclose how much LifePoint will acquire Kindred Healthcare’s facilities for but LifePoint did say it will invest $1.5 billion over the next three years to improve care in the communities the combined organization will service. The investment will go toward personal and professional growth of employees, capital projects to improve care delivery and access to care, and technology and equipment purchases.
“Adding Kindred Healthcare to LifePoint is one of the most significant demonstrations, in our company’s history, of LifePoint’s commitment to our deeply rooted mission of Making Communities Healthier,” David Dill, president and chief executive officer of LifePoint Health, said in the announcement.
“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,” continued Dill.
Kindred Healthcare’s chief executive officer Benjamin A. Breier also stated that the deal would create “enhanced career development and advancement opportunities for our Kindred teammates who have been the driving force behind our mission of delivering hope and healing to the most medically complex patients.”
“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,” Breier said.
The acquisition deal is subject to regulatory approvals and satisfaction of customary closing conditions. Additional details about the deal, its financing, and the organizational structure are forthcoming, according to the announcement.
LifePoint Health has several partnerships with leading healthcare organizations, including Duke LifePoint Healthcare, Emory Healthcare, LHC Group, regional Health Network, and UW Medicine.
The company also completed a merger with RCCH HealthCare Partners in 2018. RCCH HealthCare Partners had operated 16 regional health systems in 12 states at the time.
