Kindred targets Gentiva

Kindred Healthcare, Louisville, Ky., has announced a $1.6 billion takeover bid of Gentiva Health Services, a move Gentiva has so far rejected even after Kindred upped the ante from $7 per share to $14 per share, according to communications posted on Kindred’s website.

Gentiva, based in Atlanta, provides home health and hospice services at more than 420 locations nationwide.

“Together we would create a unique platform to 'Continue the Care' by delivering patient-centered care across the full spectrum—from hospital to outpatient facility to the patient's home," said Kindred CEO Paul Diaz in a news release. "The combined company's national footprint would allow it to deliver enhanced coordinated care, helping to transition patients home more quickly and provide more patient-centric, cost-effective treatment.”

Meanwhile, Gentiva this week promoted David Causeby, previously chief operating officer, to president and COO. Gentiva made acquisition headlines last year when it acquired Harden Healthcare’s home care services segment for $408 million, but Gentiva has struggled in the past two years under regulatory pressures and tight finances.

Noted a Reuters news release: “Raymond James' analysts favored Kindred's offer, saying a combined company would strengthen Gentiva's balance sheet, which was ‘stretched to the limits’ with the potential of further strain due to regulatory pressures.”

Kindred’s pursuit of Gentiva is reflective of Kindred’s continuing efforts to integrate more home health services into its portfolio.

Topics: Executive Leadership , Finance , Leadership