Omnicare, Inc. (NYSE:OCR) has agreed to provide skilled nursing pharmacy services for Kindred Healthcare, Inc. (NYSE:KND), the company announced in an 8-K filing on Friday.The transition is expected to commence at the end of 2013.
Kindred informed its current skilled nursing pharmacy service, PharMerica Corporation, on Friday that it would not be renewing a contract that expires on Dec. 31, 2013. PharMerica (NYSE:PMC) provides hospital pharmacy management services to Kindred’s hospitals under a separate contract that doesn’t expire until 2014.
In addition to skilled nursing, Kindred operates three other healthcare divisions: hospital, rehab, and home health and hospice. The company used to also run a fifth division, Kindred Pharmacy Services, which was spun off in a merger with AmerisourceBergen in 2006 and became PharMerica.
Kindred’s skilled nursing division operates approximately 200 nursing and rehab centers and six assisted living communities. It generated more than $2 billion in revenue in 2012.
“We’re very pleased and grateful to be partnering with a high quality organization like Kindred to support their pharmacy needs across the country,” Patrick Lee, vice president of investor relations at Omnicare, told SHN. “For some time we’ve had an interest in partnering with a company of Kindred’s stature. It’s a reflection of the progress we’ve made as an organization over the past year in enhancing our service offering across the senior care continuum. We look forward to a continued partnership with them.”
The financial details of the new agreement were not disclosed. As of press time, Kindred had not responded to Senior Housing News’ request for comment.
Written by Alyssa Gerace