Kindred leaving skilled nursing, focusing on home care
Kindred Healthcare is saying goodbye to the skilled nursing facility side of its business in the wake of huge financial losses, hoping to restructure its focus on the home care, rehabilitation and long-term acute care segments.
The announcement came after a disastrous financial year, where the Louisville, Kentucky-based company reports it lost more than $685 million in third quarter 2016 alone. The exit strategy has been in the works for about two years, said president and CEO Benjamin Breier.
“We are taking proactive strategic steps to position Kindred for long-term success against the backdrop of dynamic changes in the health care services industry,” Breier said in a corporate announcement. “Our plan to exit the skilled nursing facility business, together with the significant cost realignment initiative we are undertaking in connection with the exit, are substantial steps forward in our continuing effort to transform Kindred's strategy and growth profile to enhance shareholder value.”
Kindred also is paring down its portfolio of long-term care hospitals (LTACs), planning to make it about one-quarter of the company’s business.
“During the quarter, we acquired a large home health, hospice and community care business in Arkansas and continued to work through integration activities in our Kindred at Home (“KAH”) Division,” Breier said. “We are pleased with the strong volume and revenue growth in KAH as well as our Kindred Hospital Rehabilitation Services business and will continue our efforts to expand these businesses through organic growth, acquisitions and joint venture arrangements.”
Kindred was once one of the largest U.S. skilled nursing chains with about 300 skilled nursing facilities, now operates fewer than 100.
Pamela Tabar was editor-in-chief of I Advance Senior Care from 2013-2018. She has worked as a writer and editor for healthcare business media since 1998, including as News Editor of Healthcare Informatics. She has a master’s degree in journalism from Kent State University and a master’s degree in English from the University of York, England.
Topics: Executive Leadership , Finance