Newly announced acquisition plans from Kindred Healthcare, Inc. (NYSE: KND) look to expand the company’s long-term care market in Cleveland, which already includes assisted living and nursing centers.
Kindred announced Wednesday that it has signed a definitive agreement to acquire Western Reserve Senior Care, a Cleveland, Ohio-based, a physician-led primary care practice that delivers care in home-based settings.
Western Reserve’s physicians, nurse practitioners and nurse staff provide primary care, specialty care and urgent care services for homebound seniors in the Kindred’s Integrated Care Market in Cleveland.
The addition of Western Reserve expands Kindred’s Cleveland Integrated Care Market, which currently features two assisted living communities, three nursing and rehabilitation centers, two home health locations, two transitional care hospitals and one hospital-based sub-acute unit.
Moving forward, Western Reserve Founder and principal Dr. William Mills will become Vice President of Medical Affairs for the company’s Care Management Division. Mills will also serve as Chief Medical Officer for Kindred at Home, the company’s home health and hospice division.
Currently, Dr. Mills is on the active medical staff of the Cleveland Clinic and University Hospitals Health Systems.
“In a patient-centered care model, physicians that follow a patient across care settings will play a central role in helping patients Continue the Care through a post-acute episode,” said Paul J. Diaz, Kindred’s CEO. “As we develop and test new models of care, Dr. Mills and his team will help us grow and succeed under today’s delivery and payment system while preparing for future models.”
This includes advancing Kindred’s efforts to create “medical homes” through the company’s Care Management Division, Diaz noted, as well as providing critical support to its Centers for Medicare & Medicaid Services (CMS) Bundled Payment for Care Improvement pilot in the Cleveland market.
While financial terms of the transaction were not disclosed, Kindred expects to finance the deal with proceeds from its revolving credit facility.
Earlier this month, Kindred announced that it had completed amendments to its $750 million senior secured asset-based revolving credit facility, and its $785.5 million senior secured term loan facility to increase its borrowing capacity and improve its financial flexibly.
The Western Reserve transaction is subject to customary conditions to closing and is expected to close in the third quarter of 2013, according to a company release.
Written by Jason Oliva