Louisville, Ky.-based Kindred Healthcare has signed an agreement to buy Professional HealthCare, a provider of home-health, hospice and nursing services as well as durable medical equipment, for $51 million in cash.
Kindred to buy Professional HealthCare
Professional HealthCare operates 27 facilities in Arizona, California, Nevada and Utah and is a portfolio company of private-equity firm Mainsail Partners, San Francisco, according to a Kindred news release announcing the deal. Kindred operates four long-term acute-care hospitals and 21 nursing and rehabilitation centers within Professional's markets, according to the release.
The deal is subject to regulatory approvals and other closing conditions. Kindred expects it to be complete by the end of the third quarter of 2011.
Professional has annualized revenue of about $53 million, according to the release.
Earlier this week, Kindred predicted that reimbursement changes from the CMS for skilled-nursing facilities would result in an annual revenue hit of $95 million to $110 million. In June, Kindred announced it had completed its $1.3 billion acquisition of RehabCare Group of St. Louis.
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