LOUISVILLE, Ky. (WDRB) – Three years after being scooped up by private equity, the pieces of Louisville’s former Kindred Healthcare are finding their permanent home.
Brentwood, Tenn.-based LifePoint Health will acquire Louisville-based Kindred Healthcare LLC, a specialty hospital company, for undisclosed terms, according to a news release Monday. The deal is scheduled to close by the end of the year.
The announcement comes weeks after Louisville-based Humana Inc. said it would absorb the remainder of the former Kindred’s home health and hospice business.
Following the deal with LifePoint, Kindred Healthcare LLC will continue to operate under the Kindred name, with no changes planned to the Kindred management team or Louisville corporate office, according to a prepared statement by Kindred Healthcare CEO Ben Breier and to a company spokeswoman.
“This transaction validates Kindred’s strategy of transforming Kindred into the country’s leading specialty hospital company, and this is a natural next step in our evolution,” Breier said in the statement.
LifePoint, in a statement to WDRB, confirmed the plan to keep Kindred's Louisville leadership and corporate structure intact.
"As we welcome the Kindred team into the LifePoint family, we are confident that LifePoint will benefit from the specialized expertise, high standards of care and commitment to quality from our Kindred colleagues," the company said.
The former Kindred Healthcare had been one of Louisville’s few Fortune 500 companies until 2018, when investors approved its sale to Humana and a pair of private equity firms, TPG Capital (TPG) and Welsh, Carson, Anderson & Stowe (WCAS).
The 2018 deal split Kindred in two -- a home health and hospice company called Kindred at Home, and Kindred Healthcare LLC, a standalone operator of long-term acute care hospitals, inpatient rehabilitation facilities and contract rehabilitation services.
The private equity firms are now exiting, with Humana set to fully absorb Kindred at Home and LifePoint set to purchase Kindred Healthcare LLC.
In the news release, LifePoint said it plans to continue Kindred’s strategy of growing by establishing joint ventures and partnerships with hospitals. LifePoint said it plans to invest $1.5 billion in its business following the deal.
“The combination of LifePoint and Kindred is supported by a thesis predicated on investment in community healthcare and growth – not on cost-savings resulting from bringing the organizations together,” according to the release.
Breier added that becoming part of LifePoint will mean professional development opportunities for Kindred’s workers.