Editor’s note: This article was written by guest blogger Anthony Cirillo, FACHE, ABC, a healthcare marketing and experience management expert and elder advocate. For more information about the author, please see our About page.
Kindred Healthcare recently announced that its subsidiaries have signed an agreement to acquire five long-term acute care (LTAC) hospitals from Vista Healthcare. The assets generate revenues of approximately $150 million and earnings of approximately $27 million.
Kindred also announced an agreement to acquire three recently constructed nursing and rehabilitation centers in the Dallas-Fort Worth market for a purchase price of $38 million in cash.
The company also intends to develop two of these three nursing centers into transitional care centers, focused on short-term rehabilitation and medically complex patients, and add a transitional care unit to the third nursing center.
What is Kindred doing? It’s positioning itself well for healthcare reform. No one seems to know what an accountable care organization will look like in long-term care. Hospitals are wondering if they should re-acquire nursing homes. Others, like Gentiva, buy more of the continuum of care. Some nursing homes seek Joint Commission accreditation to position themselves favorably to be included in an accountable care organization. Some payers mandate accreditation.
Massachusetts’ state employee health plan began offering two new limited network plans at 20% lower premium cost this year. The statement that made is that not every provider may be in the favored accountable care organization. Low costs, operational efficiency, and high quality will position organizations better.
Kindred, by owning the post-hospital experience, will control more of the care and could achieve the operational efficiencies and quality that could make them an accountable care organization in and of themselves.
A member of the Healthcare Advisory Board concluded a presentation on reform recently with this idea – future competitive positioning will likely be determined by today’s decisions. Kindred is moving forward today. What about you?
Let me know what you think. Email me at Cirillo@4wardfast.com