Kaiser Permanente is getting out of the nursing home business, closing its lone skilled nursing facility, a spokesperson confirmed in an email Wednesday.
The nonprofit health system is shutting down the 176-bed nursing home in San Leandro, California in November, which will displace approximately 250 workers, the spokesperson said. He added that staff are working to transition patients either to their homes or to other skilled nursing facilities in the area.
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Kaiser Permanente cited a steady decline in patients over the past 11 years for the closure, and the organization has looked to grow its capacity to deliver care in the home. One way is through Habitat Health, a joint venture with investment firm Town Hall Partners, to provide Programs of All-Inclusive Care for the Elderly.
Kaiser Permanente operates 40 hospitals and more than 600 medical offices, as well as a health insurance plan across eight states and the District of Columbia. The system would not provide details on the number of skilled nursing facilities it has sold or closed over the past several years. It joins a growing list of health systems that have sold off non-core assets.
In March, Advocate Health announced the sale of non-medical care company Senior Helpers to Waud Capital Management for an undisclosed sum. Hackensack Meridian Health, ProMedica and Bon Secours Mercy have also sold off nursing homes, home health and hospice businesses.
