Kindred CEO Paul Diaz said the company has been restructuring, a response to what he described as a “decade-long earnings leakage” because of a tumultuous operating environment within the skilled-nursing care industry. The company has offloaded or announced plans to offload 136 skilled-nursing facilities, reducing its share of the total business from 46.9% in 2010 to 21.2% by 2014.
“We've been extremely busy accelerating our strategic plan to reposition Kindred around its core integrated care market strategy,” Diaz said during the conference call. “I am pleased to tell you this morning that we are well on our way to success on a number of fronts.”
The company has been positioning itself over the past several years to be an all-inclusive post-acute care provider within each of the 16 markets it currently operates.
“There are not many organizations that are going to have the scale to do what Kindred is doing,” said Andy Edeburn, vice president of continuum strategies for the healthcare consulting firm, Health Dimension Group, based in Minneapolis.
In August, the company acquired Western Reserve Senior Care based in Cleveland, a physician-led primary-care practice that provides care in home-based settings. In October, it expanded its rehabilitation-care division with the purchase of hospital-based rehabilitation services provider TherEx for $14 million. And this week, Kindred announced plans to buy Senior Home Care for $95 million. Senior Home Care provided homes healthcare services throughout the southeast, with 47 locations in Florida and Louisiana.
Follow Steven Ross Johnson on Twitter: @MHSjohnson