Skilled Nursing Must-Reads: Kindred Kickstarts Exit, Bundled Promise
Before you start sifting through your inbox, here’s what you need to know from the world of skilled nursing news from the past week:
Kindred Healthcare, Inc. (NYSE: KND) began its exit from the skilled nursing industry, announcing the $519 million sale of 54 SNFs in 10 states — out of a total of 89 set for the chopping block. Ventas, Inc. (NYSE: VTR), the Chicago-based real estate investment trust (REIT) that owned 22 of the SNFs involved in the deal, received $488 million at the time of the closing.
In a separate move, the Ohio-based provider CommuniCare announced that it will take over operations at 16 former Kindred SNFs in Indiana; the terms of the deal were not disclosed.
Elsewhere in the world of mergers and acquisitions, Omega Healthcare Investors, Inc. (NYSE: OHI) picked up 15 skilled nursing facilities in the Hoosier State for $190 million, bringing 2,074 more SNF beds into the REIT’s portfolio. The new operators were not disclosed.
Meanwhile, Fitch Ratings said a proposed Centers for Medicare & Medicaid Services (CMS) plan to ax some bundled payments could serve as a reprieve from the headwinds facing the skilled nursing industry. And finally, a new study from a Columbia University researcher dove into the pros and cons of preferred SNF networks, which have been shown to reduce readmissions — but potentially at the expense of consumer choice.
Check back with SNN all week long for updates about the most pressing industry news, including the continued recovery from Hurricanes Irma and Harvey.
Written by Alex Spanko