Kindred Healthcare is selling a dozen long-term acute care hospitals to Curahealth for $27.5 million.
Curahealth is an affiliate of private investment fund Nautic Partners.
In a release Monday, Louisville, Ky.-based Kindred said it is divesting the hospitals to focus on core facilities.
The hospitals, which have a total of 783 licensed beds, are located in Arizona, Louisiana, Massachusetts, Oklahoma, Pennsylvania and Tennessee, Kindred said in the release.
“Optimizing our LTAC hospital portfolio is a key element of our LTAC criteria mitigation strategy, and this transaction is another important step forward in our efforts,” Kindred CEO Benjamin Breier said in the release.
The divested hospitals are expected to generate full-year revenue of about $215 million.
The deal is expected to net about $21 million, subject to adjustments for financial and other post-closing conditions. Kindred anticipates that the sale will be completed in the third quarter of 2016.
Kindred said it would report pre-tax charges of about $54 million related to Ventas lease amendments and about $45 million to $55 million related to the transaction with Curahealth within fiscal 2016.
The deal, meanwhile, will yield future cash income tax benefits for Kindred of about $38 million, the company said.