Aug 20 Hospital operator Kindred Healthcare Inc
will buy privately held IntegraCare Holdings Inc for $71
million in cash to expand its home health and hospice business
IntegraCare's current owner private equity firm Flexpoint
Ford LLC could earn an additional $4 million in cash based on
the company's 2013 earnings.
Home health and hospice companies in the United States have
grappled with changes in Medicare regulations, lower
reimbursement rates and federal investigations into billing
Kindred CEO Paul Diaz said IntegraCare would help it expand
services in Dallas and Houston and would serve as a model for
additional markets throughout the South.
IntegraCare currently generates annual revenue of about $71
million and EBITDA of about $9 million.
The transaction, expected to close by third quarter of 2012,
will add between 7 cents and 9 cents per share to Kindred's
earnings in 2013.
Shares of Louisville, Kentucky-based Kindred were up
marginally at $11.40 on Monday on the New York Stock Exchange.