Kindred Healthcare, Louisville, Ky., said it sold nine under-performing nursing centers and expects to sell two more nursing centers in 2007. The company said the sale generated about $74 million, and that it expects about $4 million in additional proceeds from the sale of the remaining centers. Also, Kindred said the centers generated a pre-tax losses of about $4 million in the year ended Dec. 31, 2005, and $3 million for the nine months ended Sept. 30, 2006, and that the company expects to record a pre-tax loss of about $7 million to $10 million related to the divestitures in the first quarter of 2007.
In addition, Kindred said it completed a sale and leaseback transaction involving three hospitals. In that deal, Kindred paid a one-time cash payment of about $36 million and amended its master lease agreement. A day later, the post-acute care provider said it signed an agreement to lease eight skilled-nursing facilities in Northern California from privately held Ocadian, San Francisco. Terms were not disclosed. The deal will expand the companys presence in San Francisco, Oakland and the surrounding markets, Paul Diaz, Kindreds president and chief executive officer, said in a news release.
At deadline, representatives for Kindred were not available for comment. The company provides services in more than 500 locations in 39 states. Through its subsidiaries, Kindred operates long-term acute-care hospitals, skilled-nursing centers, institutional pharmacies and a contract rehabilitation services business. -- by Jessica Zigmond