LifePoint, Kindred spinning off new 79-hospital entity at acquisition’s close – Healthcare Dive

Dive Short-term:
For-revenue hospital system LifePoint Well being and rehab and prolonged-time period care operator Kindred Well beingcare plan to launch A mannequin new healthcare agency, referred to as ScionWell being, comprised of Kindre…….

Dive Short-term:

  • For-revenue hospital system LifePoint Well being and rehab and prolonged-time period care operator Kindred Well beingcare plan to launch A mannequin new healthcare agency, referred to as ScionWell being, comprised of Kindred’s 61 prolonged-time period acute care hospitals and 18 of LifePoint’s group hospitals as quickly as LifePoint and Kindred’s tie-up is full.
  • Tennessee-based mostly LifePoint signed a definitive settlement To accumulate Louisville-based mostly Kindred in June for an undisshutd quantity. However ScionWell being Shall be A fullly separate agency from LifePoint, with separate management groups and boards of directors, The corporations conagencyed to Well beingcare Dive.
  • LifePoint and Kindred anticipate the transaction To close and ScionWell being to be launched by The prime of this yr, topic to regulatory approvals and fullly different closing circumstances. Shifting forward, LifePoint Shall be comprised of its roughly 65 remaining group hospitals and doctor apply community, As properly as to Kindred’s rehabilitation and behavioral health companies.

Dive Perception:

The Kindred acquisition introduced earlier this yr would have left LifePoint with some 200 acute, prolonged-time period and rehab hospitals, However the private-equity backed corporations are electing to spin Pretty A pair of amenities off Proper into a separate enterprise.

Upon shut, ScionWell being will Include 79 hospital campuses in 25 states, and Shall be focused on offering acute and submit-acute care, As properly as to investing in group healthcare, The corporations said.

“As our groups started To look at how biggest to convey collectively the operations of LifePoint and Kindred, it turned more and more clear that we had The biggest combination of expertise, providers and belongings to reorganize into two strong corporations To raised serve our sufferers and communities,” David Dill, president and CEO of LifePoint, said in A press launch.

The amenities making up ScionWell being have been chosen As a Outcome of of being aligned When it Includes operational and strategic progress, Based on LifePoint and Kindred administration.

The 18 amenities LifePoint is divesting to ScionWell being are primarily standalone or independently working amenities Inside their areas, Similar to Palestine Regional Medical Center in Palestine, Texas; St. Joseph Regional Medical Center in Lewiston, Idaho; SageWest Well being Care’s amenities in Lander and Riverton, Wyoming.

Becoming a member of ScionWell being will permit the amenities extra Tailored consideration and plans for progress, clinician recruitment And restore line enchancment, Based on a spokesperson. After the transaction’s shut, every ScionWell being hospital will function beneath The identical identify it does right now.

On the deal’s closing, LifePoint and ScionWell being anticipate Getting into into transition providers preparations, the place a vendor and a buyr Adjust to current sure providers To at least Each fullly different at a predetime periodined worth. Particulars round these preparations are nonetheless being labored out, the spokesperson said.

Each LifePoint and Kindred have private equity house owners: PE agency Apollo acquired LifePoint in 2018 for $5.6 billion, the placeas Pretty A pair of PE groups (Together with payer Humana) nabbed Kindred in 2017 earlier than splitting off the prolonged-time period care And residential health companies.

In April, Humana agreed To buy the remaining stake in Kindred at Home for $5.7 billion, The Most very important acquisition Inside the payer’s historic previous.

ScionWell being Shall be based mostly in Louisville, Kentucky, Shall be led by a administration group drawing from both LifePoint and Kindred. Rob Jay, who presently serves as EVP of constructed-in operations at LifePoint, will serve ScionWell being’s CEO.

Meanthe placeas, Benjamin Breier, Kindred’s current CEO, will step down from his position Due to transaction.

Source: https://www.healthcaredive.com/news/lifepoint-kindred-spinning-off-79-hospital-entity-acquisition-scionhealth/608932/

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