Kindred Healthcare plans to acquire two behavioral health hospitals in Texas from WellBridge Healthcare.
Louisville, Ky.-based Kindred signed a definitive agreement to acquire WellBridge Greater Dallas and WellBridge Forth Worth.
The companies plan to close the deal in summer 2020, subject to regulatory approvals and closing conditions.
The Dallas and Fort Worth facilities, which will retain the WellBridge name, provide inpatient and outpatient behavioral health services in North Texas. They both have 48 licensed beds. They will join Kindred's portfolio of 64 long-term acute care hospitals and 21 inpatient rehabilitation hospitals.
Kindred said in a news release announcing the deal that the acquisitions fit the company's goal of expanding its behavioral health services, including crisis stabilization for acute mental health and substance use disorders. Kindred said it plans to expand its behavioral health footprint across the U.S. through joint ventures and "distinct part unit management" with leading hospital systems.
"Our expansion into behavioral health services is consistent with our mission and is a natural extension of the high-quality services we provide in our long-term acute care hospitals and inpatient rehabilitation facilities," Jason Zachariah, Kindred's chief operating officer, said in a statement. "We look forward to applying our expertise and experience to serve more patients with behavioral health issues."
Kindred generated $3.2 billion in revenue in the 12 months ended March 31, 2020. The company did not disclose the purchase price for the two hospitals.
Another of Kindred's joint ventures in the works is its plan, announced in 2018, to operate a 40-bed rehabilitation hospital in Sacramento, Calif. with the University of California, Davis. That deal has triggered union opposition.
Humana and private equity firms TPG Capital and Welsh, Carson, Anderson & Stowe acquired Kindred in July 2018. Under that deal, TPG and Welsh took over Kindred's long-term care hospitals and inpatient rehabilitation facilities and all three buyers now operate Kindred's hospice, home health and community-care businesses under the collective title Kindred at Home.