A Booming Industry: Nation's largest nursing home provider to sell three Massachusetts facilities
The evidence is clear... the senior care industry is booming. This article just came across my attention as I used to live in the Boston area- What are your thoughts? Have you seen a new facility like this pop up locally near you? I be the answer is Yes!
The nation’s largest nursing home provider said it would sell a dozen of its long-term acute care hospitals for $27.5 million — three of which are in Massachusetts.
Kentucky-based Kindred Healthcare (NYSE: KND) said it will sell its facilities in Peabody, at 1515 Commonwealth Ave. in Boston, and one in Stoughton as well as nine others across the country to Curahealth LLC, according to a regulatory filing. The deal is expected to close by the end of July.
“This transaction creates both strategic and financial value for Kindred,” saidBenjamin A. Breier, president and CEO of Kindred, in a statement. Curahealth is an affiliate of a private investment fund founded by Providence-based Nautic Partners.
Local representatives from Kindred, which has nearly 30 locations in the Bay State alone, said in a statement that the same caregivers would be taking care of patients under new ownership.
In the regulatory filing, Kindred said the new owner will retain “substantially all” of the existing Kindred employees at the soon-to-be-sold facilities.
All three Massachusetts facilities provide long-term care for patients that require extended recovery time, such as geriatric patients. Both Boston and North Shore facilities have 59 beds. Stoughton has 88 licensed beds. The facilities that are being sold to Curahealth have a total of 783 licensed hospital beds in six states.
Kindred, which operates 95 long-term acute care hospitals in 22 states, another 604 home health and hospice services in 40 states, and dozens of other rehabilitation-type centers throughout the country, reported weaker financial operations for 2015, with operating income decreasing 8.7 percent to $477.5 million.
The organization’s hospital unit, where the sales will take place, has been a particular challenge, with same-hospital revenue in the fourth quarter falling 3.3 percent from a year earlier, to $594 million.
The news comes on the heels of a $125 million settlement to resolve claims that Kindred charged Medicare for services that were unwarranted or never occurred.
Employees from Kindred’s Natick location were also left scrambling when MetroWest Medical Center ended the care provider’s lease in June. Executives said half of the 60 employees found jobs at other Kindred locations in Massachusetts.
Credit for this article is owed to http://www.bizjournals.com/boston/blog/health-care/2016/04/nations-large...