Kindred Healthcare

Kindred Healthcare, LLC
Private
Founded 1985 (1985) in Louisville, Kentucky, United States
Headquarters Louisville, Kentucky, USA
Area served
 United States
Key people
Revenue US$6.034 billion (2017)[2]
US$-166 million (2017)[2]
US$-698 million (2017)[2]
Total assets US$5.233 billion (2017)[2]
Total equity US$123 million (2017)[2]
Number of employees
 ~38,300 (June 2018)[2]
Divisions
  • Kindred Hospitals
  • Kindred Rehabilitation Services
Website kindredhealthcare.com

Kindred Healthcare is a healthcare services company that operates long-term acute-care hospitals and provides rehabilitation services across the United States. Kindred is a diversified post-acute healthcare provider.[3]

Kindred's headquarters and support center are located in Louisville, Kentucky.

As of March 2018, Kindred Healthcare had approximately 38,300 employees in 45 states and approximately $3.4 billion in annual revenues.[4]

History

Kindred was founded in 1985 as Vencor, Inc. The current name was adopted on April 20, 2001, following Vencor’s emergence from Chapter 11 bankruptcy. Kindred went public in 2001 on the New York Stock Exchange with the symbol KND.[5][6]

In February 2011, Kindred Healthcare agreed to acquire RehabCare Group for approximately $900 million in cash and stock to create, at the time, the largest post-acute health care services company in the United States.[7]

In October 2014, Kindred Healthcare, Inc. and Gentiva Health Services, the largest provider of home health care, hospice and related services in the United States, announced a merger agreement under which Kindred would acquire all outstanding shares of Gentiva common stock for $19.50 per share in a combination of cash and stock. The deal was officially signed into agreement effective January 31, 2015, with Gentiva becoming a wholly owned subsidiary of Kindred.[8][9]

In June 2017, Kindred announced a definitive agreement with BM Eagle Holdings, LLC, a joint venture led by affiliates of BlueMountain Capital Management, to sell the company’s skilled-nursing facility business for $700 million. The sale included 89 nursing centers with 11,308 licensed beds and seven assisted living facilities with 380 licensed beds, which collectively had approximately 11,500 employees in 18 states.[10]

In December 2017, Kindred Healthcare Inc. announced that it would be acquired for approximately $4.1 billion by a consortium of three companies: TPG Capital, Welsh, Carson, Anderson & Stowe (WCAS) and Humana.[11] The acquisition was contested by shareholder Brigade Capital Management, who filed a suit with the SEC in March of 2018 and submitted a letter to Kindred's board and management arguing that the $9 per share price offered by the deal was "grossly inadequate." [12]

Upon acquisition, the home health, hospice and community care businesses would be separated from Kindred and operated as a standalone company owned 40 percent by Humana, with the remaining 60 percent owned by TPG and WCAS.[13][14] Kindred’s long-term acute care hospitals, rehab hospitals and contract rehabilitation services businesses would be operated as Kindred Healthcare, a separate specialty hospital company owned by TPG and WCAS.[15][16] The transaction was approved on April 5, 2018 and completed on July 2, 2018.[17][18]

Kindred’s stock ceased trading on the New York Stock Exchange on June 29, 2018, as it transitioned to a privately held company.[19]

Divisions

Kindred operates two divisions: Transitional Care Hospitals and Kindred Rehabilitation Services.[20]

Transitional Care Hospital

The Transitional Care Hospital division provides long-term acute care services to medically complex patients. Along with traditional freestanding hospitals, Kindred operates hospital-in-hospitals (HIH) that operate in a "host hospital" to provide long term acute care to patients it receives from the short-term acute care units.[21]

Kindred Rehabilitation Services

Kindred's Rehabilitation division serves both Kindred and non-Kindred sites. Services are organized into two operating segments: skilled nursing rehabilitation services (SRS), in which Kindred provides contract therapy services across multiple settings including skilled nursing facilities, assisted living facilities, independent living facilities, continuing care retirement communities and outpatient facilities; and hospital rehabilitation services (HRS), in which Kindred provides inpatient program management and therapy services to standalone inpatient rehabilitation facilities, hospital units, and outpatient services to hospital-based satellite programs.[21][22]

In June 2011, Kindred combined its previous rehabilitation division with its new acquisition of RehabCare, renaming the division after this acquisition.[23]

In January 2016, Kindred Healthcare Inc. and its subsidiary RehabCare Group Inc. agreed to pay $125 million to settle a whistleblower lawsuit on Medicare therapy claim overbilling. The settlement ended an investigation into claims brought against the companies by former RehabCare therapists in a 2011 lawsuit. The suit claimed RehabCare routinely scheduled skilled nursing facility residents for higher levels of therapy than needed, resulting in therapy services were not reasonable or necessary, or never occurred.[24]

See also

References

  1. 1 2 Kindred Healthcare. "Kindred Healthcare - Investor Relations - Management". corporate-ir.net. Retrieved April 8, 2015.
  2. 1 2 3 4 5 6 "Kindred Healthcare, Inc. 2017 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. February 2018.
  3. ↑ "Kindred Healthcare, Nation's Largest Post-Acute Healthcare Provider, Selects Allscripts Referral Management". Bio-Web. November 20, 2008.
  4. ↑ "Humana, Together with TPG Capital and Welsh, Carson, Anderson & Stowe, Announce Completion of the Acquisition of Kindred Healthcare, Inc. - New York Times". markets.on.nytimes.com. Retrieved 2018-07-30.
  5. ↑ "Vencor Emerges From Chapter 11; Changes Name to Kindred Healthcare, Inc". Business Wire. April 20, 2001. Retrieved April 16, 2014.
  6. ↑ "Kindred Healthcare IPO year (KND) – wallmine.com". wallmine.com. Retrieved 2018-07-31.
  7. ↑ Protess, Ben. "Kindred Healthcare to Buy RehabCare for $900 Million". DealBook. Retrieved 2018-07-31.
  8. ↑ "DEFM14A". www.sec.gov. Retrieved 2018-08-01.
  9. ↑ "After long struggle, Kindred acquiring Atlanta company for $1.8 billion". www.bizjournals.com. Retrieved 2018-08-01.
  10. ↑ "Kindred Announces Definitive Agreement to Divest Skilled Nursing Facility Business". Retrieved 2018-08-08.
  11. ↑ "Humana firms close purchase kindred healthcare". Courier Journal.
  12. ↑ Larson, Chris (9 March 2018). "Major Kindred Healthcare investor sues to stop Humana merger". Louisiana Business First. Retrieved 28 September 2018.
  13. ↑ HealthLeaders. "Humana, Private Equity Consortium Finalize $4.1B Kindred Purchase | HealthLeaders Media". www.healthleadersmedia.com. Retrieved 2018-09-04.
  14. ↑ "Humana will buy stake in Kindred's home care business". USA TODAY. Retrieved 2018-09-04.
  15. ↑ "Humana, Together with TPG Capital and Welsh, Carson, Anderson & Stowe, Announce Completion of the Acquisition of Kindred Healthcare, Inc". MarketWatch. Retrieved 2018-08-31.
  16. ↑ "Humana, TPG and WCAS complete take-private buyout of Kindred - PE Hub". PE Hub. 2018-07-02. Retrieved 2018-08-31.
  17. ↑ "Kindred Stockholders Approve Transaction with TPG Capital, Welsh, Carson, Anderson & Stowe and Humana Inc". Retrieved 2018-08-13.
  18. ↑ Editorial, Reuters. "BRIEF-Kindred Stockholders Approve Deal With TPG Capital, Humana". U.S. Retrieved 2018-08-13.
  19. ↑ "Humana, Together with TPG Capital and Welsh, Carson, Anderson & Stowe, Announce Completion of the Acquisition of Kindred Healthcare, Inc". Retrieved 2018-08-16.
  20. ↑ SeniorsGuideOnline. "Kindred Transitional Care and Rehabilitation – Greenfield". Seniors Guide. Retrieved 2018-08-17.
  21. 1 2 Kindred Healthcare (2012). "Kindred Healthcare Annual Report: SEC Form 10-K 2012". p. 32. Retrieved June 3, 2013.
  22. ↑ "Kindred to Exit the Skilled Nursing Facility Business". Home Health Care News. 2016-11-07. Retrieved 2018-08-20.
  23. ↑ Kindred Healthcare, Inc. (2011). "Kindred Healthcare Completes Acquisition of RehabCare Group". Press Release. Retrieved July 5, 2011.
  24. ↑ Mongan, Emily (January 12, 2016). "Kindred, RehabCare settle False Claims allegations for $125 million". The United States Department of Justice. McKnight's LTC News. Retrieved May 27, 2016.
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