With $7.2 billion in annual revenues, Kindred Healthcare is the largest post-acute provider in the country, but now the hard work begins.
This past Monday, Kindred Healthcare closed on its $1.8 billion acquisition of home health and hospice provider Gentiva Health Services. With this completed, Kindred is entering a pivotal period in its corporate life because it has all the parts to run a true nationwide post-acute company, from hospital discharge to the home. It is the largest LTAC and inpatient rehab operator in the country, the largest provider of rehab, home health and hospice services in the country, and one of the largest subacute and skilled nursing providers. You might think that it is missing one important ingredient, and that is assisted living and memory care, but the company has been trying to get away from a long-term residential model and focus on getting the patient healthy enough to move back home, whether an ALF or a personal residence. They don’t need to provide long-term living, such as assisted living. The company’s annualized revenues are now $7.2 billion, with operating income over $1.0 billion. One looming question is, has the company become too large to be well managed and fully integrated? We will find out in two years.
