Kindred wins bid to privatize Arkansas home health business

Source: Dave Barkholz, Modern Healthcare, June 21, 2016

Kindred Healthcare has agreed to purchase the State of Arkansas’ home health operations in a privatization move that would put the company’s facilities in 70 counties across the state, compared with the four it currently covers. The investor-owned giant was the winning bidder for the Arkansas Department of Health’s in-home healthcare operations, the two sides announced Monday. Kindred agreed to pay $39 million for the business. As part of the privatization, Kindred agreed to retain all employees and serve all current patients upon consent. … In the transaction, Kindred is buying the agency’s 74 home health locations serving 69 counties, seven offices providing hospice services in 42 counties and its personal care services business that assists patients with their daily living. Today, Louisville, Ky.-based Kindred has six offices providing home health and hospice in four of the state’s counties. Altogether, the company will have a presence in 70 of Arkansas’ 75 counties after the deal closes. …

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State sells its in-home care setup to firm; services go to $39M bidder
Source: Chris Bahn & Michael Wickline, Arkansas Online, June 21, 2016

Kindred Healthcare Inc. is under contract to purchase the Arkansas Department of Health’s in-home health care services for $39 million, the company and state announced Monday. … After figuring costs associated with the sale and transition, including retention bonuses for about 1,880 employees and contract workers, Hutchinson said, the state will net about $24 million from the transaction. Hutchinson said the state was losing money providing in-home health services and called the decision to sell “a unique solution” that allowed the state to preserve the jobs of about 280 state employees and an additional 1,600 contract employees for up to a year. The arrangement also allows for 3,380 patients to continue coverage for at least a year. Kindred will acquire the Department of Health’s 74 home health locations providing services in 69 counties, seven offices providing hospice services in 42 counties and a personal-care services business. …