In a move that aims in part to expand the availability of behavioral health services, LifePoint Health has entered into a definitive agreement to acquire Kindred Healthcare.
Financial terms of the transaction were not released; however, LifePoint said that it will not use COVID-19 relief funds for the purchase and that it plans to provide additional details on the deal prior to its closing, which is expected for Q4 of 2021.
Headquartered in Louisville, Kentucky, Kindred Healthcare is a specialty hospital provider that recently added a behavioral health arm. The company also has more than 60 acute care facilities, about 25 inpatient rehabilitation facilities and more than 100 acute rehab facilities.
Like Kindred’s other books of business, Kindred Behavioral Health Services focuses on joint ventures and management services agreements with health systems nationwide.
Meanwhile, LifePoint Health is based in Brentwood, Tennessee. The health system has nearly 90 hospitals and more than 50 post-acute service providers, as well as dozens of outpatient facilities, across 29 states.
The transaction will give LifePoint the ability to treat an even wider swath of patients across the continuum of care, while also advancing clinical, quality and compliance excellence, according to a press release announcing the news. Plus, it allows for new investments in services and technology and creates opportunities for LifePoint to develop and expand critical behavioral health services nationwide, the provider said.
“Adding Kindred Healthcare to LifePoint is one of the most significant demonstrations, in our company’s history, of LifePoint’s commitment to our deeply rooted mission of Making Communities Healthier,” David Dill, president and chief executive officer of LifePoint, said in the press release. “Kindred’s focus on healing and hope, provided through its long-term acute care hospitals, rehabilitation centers and most recently its behavioral health services – an important and growing need across the country – is highly complementary to the current LifePoint network.”
Post-transaction, LifePoint said it will continue Kindred’s strategy of forming partnerships and joint ventures with the nation’s leading hospitals and health systems to expand into new geographies.
Additionally, the company added that it plans to invest $1.5 billion into the combined company over the next three years. That money will be used for employee development; capital projects to improve care access and delivery; and new technology, digital solutions and equipment.
Behavioral Health Business reached out to LifePoint Health and Kindred Healthcare for this story. LifePoint said it had no further details to share, while Kindred had not responded at the time of publication.