Louisville, Ky.-based Kindred Health-care is selling its 91 skilled-nursing facilities and exiting that slow-growth business for a new strategy that will rely on preferred partnerships with other nursing home operators to ensure a smooth patient handoff.
The first of those partners was announced last week. Nursing home giant Genesis HealthCare has entered into “strategic clinical collaboration” with Kindred to improve quality, outcomes and patient transitions between the two systems, Kindred and Genesis announced.
Details of the partnership are unknown. But Genesis, with its 500 skilled-nursing facilities in 34 states, operates in many markets where Kindred operates post-acute facilities in the faster-growing segments of home and hospice care, rehabilitation services and long-term acute care.
Kindred is the nation's largest provider of such services with 2,702 locations in 46 states and annual revenue of $7.2 billion.
In announcing the deal, Genesis CEO George Hager Jr. said that close coordination between the two post-acute giants was crucial in an era of value-based purchasing.
“Our relationship marks the first time the two largest providers of post-acute care are working together to pave the future for patients, payers and the healthcare system,” Hager said.