LifeCare Holdings, Plano, Texas, closed on its agreement to buy seven long-term acute-care facilities from HealthSouth Corp., Birmingham, Ala., for a revised purchase price of $117.5 million.
LifeCare closes deal for seven HealthSouth sites
The two companies dropped a hospital from the agreement last week, in order to avoid having the deal bogged down by a federal investigation. HealthSouth in June had received a subpoena from HHS' inspector general's office seeking documents related to patient admissions, length of stay and discharge matters. HealthSouth expects to close the Houston facility in the third quarter of this year and sell the related real estate.
The total purchase price also was lowered from $120 million.
The involved facilities are located in Las Vegas; Mechanicsburg and Monroeville, Pa.; Ruston, La., with remote locations in the neighboring Louisiana communities of Farmerville and Homer; and Sarasota, Fla., according to LifeCare.
HealthSouth will use the proceeds to help fund a call of $164 million in 10.75% senior notes, according to a news release. The call is expected to be completed about Sept. 1 and will require approximately $175 million, according to HealthSouth.
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