Kindred still holds on to 90 skilled nursing centers across the country, but the healthcare giant is looking to possibly sell these off. The company is dealing with a lot of financial pressure due to long-term debt and has seen its market share drop by more than 40 percent over the past year and that has many within the industry pondering the long-term ramifications.
Skilled nursing care can be provided through a number of facilities, but it’s also a key component of in home care for many Americans. As the population in the country continues to age, there are serious concerns in both the private and government sectors about how sustainable these services are, especially as reimbursement rates through Medicaid, for example, continue to be trimmed down.
As President Donald Trump and other GOP legislators are determine the repeal and replace the Affordable Care Act, more commonly referred to as Obamacare, the uncertainty regarding costs and reimbursement continues to increase.
News of Humana and now Kindred looking to sell at least part of the service sectors they control, there are some within the Louisville, Kentucky, who are concerned about the impact this could have on the local economy.
According to the Courier-Journal report, Report: Louisville’s Kindred Healthcare may be exploring a sale, written by Grace Schneider:
“Nonetheless, the rumor mill ginned up quickly after a London-based merger and acquisition tracking service, Dealreporter, posted a story saying that multiple suitors had expressed interest in Kindred’s skilled nursing business, which had given rise to discussions about a complete buyout. Dealreporter wrote that the company, which is working with Guggenheim Partners and other investment firms, is in the early stages of the process and would consider a deal for the right price.
A sale may be difficult for a multi-faceted business that also provides home health, hospice, rehabilitation and long-term acute care, Dealreporter said.”
Just a few short years ago it seemed as though corporate giants like Kindred were only going to grow and expand, especially with the increasing demand for in home care support across the country. As the federal government through Medicaid has cut reimbursement rates for in home care support and skilled nursing care, and with continued uncertainty regarding insurance providers and the Affordable Care Act, it has led to some difficult decisions for Kindred and other major companies, but also has fanned the flames of rumor surrounding some of these giants in the industry.