Kindred Healthcare has agreed to purchase the State of Arkansas' home health operations in a privatization move that would put the company's facilities in 70 counties across the state, compared with the four it currently covers.
The investor-owned giant was the winning bidder for the Arkansas Department of Health's in-home healthcare operations, the two sides announced Monday. Kindred agreed to pay $39 million for the business.
As part of the privatization, Kindred agreed to retain all employees and serve all current patients upon consent. The deal is expected to be completed in the third quarter pending customary approvals.
“We are not in the business of competing with the private sector,” said Arkansas Gov. Asa Hutchinson. “The Arkansas Department of Health provided an important service while it was necessary, and now private-sector companies can fill this need.”
In the transaction, Kindred is buying the agency's 74 home health locations serving 69 counties, seven offices providing hospice services in 42 counties and its personal care services business that assists patients with their daily living.
Today, Louisville, Ky.-based Kindred has six offices providing home health and hospice in four of the state's counties. Altogether, the company will have a presence in 70 of Arkansas' 75 counties after the deal closes.
“We are excited to bring in our care and clinical protocols to these operations to improve the ability of patients to safely return home or to remain in their home,” said Kindred CEO Benjamin Breier.
Kindred, which operates long-term care and rehabilitation hospitals and provides a continuum of home and hospice services, posted 2015 revenue of $7 billion.