In an effort to focus on core operations, Vencor plans to sell its home-care business along with its hospice operations in separate deals.
The Louisville, Ky.-based long-term-care company confirmed late last week its intention to sell its 21 hospice agencies located in 11 states to privately held VistaCare of Scottsdale, Ariz.
Meanwhile, Louisville-based Caretenders Health Corp., a publicly traded firm, said it would buy 11 of Vencor's 21 home-care agencies. The remaining 10 agencies will be closed or the business will be transferred to other agencies, Vencor spokeswoman Susan Moss said.
Both deals are expected to close sometime in the third quarter. Terms of the deals weren't disclosed. Vencor operates 60 long-term-care hospitals and more than 300 nursing homes in 45 states.
"It's an opportunity for us to focus on our long-term hospitals, nursing homes and ancillary services of respiratory therapy, physical therapy, speech therapy and occupational therapy," she said.
Vencor's hospice and home-care businesses accounted for 2%, or about $60 million, of the company's $3 billion in annual revenues.
The deal launches VistaCare onto the national hospice scene. Founded in 1995, VistaCare's hospices provide services for terminally ill patients with less than six months to live. Those services are reimbursable to Medicare.
VistaCare is run by Barry Smith, the former chief executive officer of ValueRx, a Plymouth, Minn.-based pharmacy benefits business bought by Columbia/HCA Healthcare Corp. last year and sold earlier this year to St. Louis-based Express Scripts (April 6, p. 16).