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.
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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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160620006328/en/
Kindred HealthcareSusan E. Moss, 502-596-7296Senior Vice
President,Marketing and
Communicationssusan.moss@kindred.comorArkansas Department of
HealthMeg Mirivel, MA, 501-280-4768Public Information OfficerOffice
of Health Communicationsmargaret.mirivel@arkansas.gov
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