HCA Healthcare And Brookdale Senior Living Sell Off Large Chunk Of Home Health Joint Venture
A little more than two months after closing a $400 million deal to purchase a majority stake in Brookdale Health Care Services, HCA Healthcare Inc. is selling off a large chunk of its new joint venture.
Home health care provider LHC Group has agreed to purchase 23 home health locations, 11 hospice and 13 outpatient therapy agencies across 22 states from the HCA and Brookdale Senior Living joint venture, according to a news release. Terms of the deal, which is expected to close in the fourth quarter, were not disclosed.
HCA officially completed its purchase of a majority stake in BHS — Brookdale’s home health, hospice and outpatient therapy business — in July at a price tag of $400 million.
The deal implied a $500 million value for BHS, enabling Brookdale to retain a 20% stake in the division. At the time, BHS operated 57 home health agencies, 22 hospice agencies and 84 outpatient therapy locations across 26 states, providing care at Brookdale facilities and inside patients’ homes.
The facilities that are being sold to LHC Group are not in HCA markets, according to the release. HCA (NYSE: HCA) is Nashville’s largest publicly traded company and the nation’s biggest hospital operator, with $51.5 billion of revenue in 2020. The company operates 185 hospitals across 20 states.
“In July, HCA Healthcare purchased a majority stake in Brookdale Health Care Services to expand access to healthcare services for our patients,” HCA CEO Sam Hazen said in the release. “We believe the sale to LHC Group of these sites of care, which were part of that transaction and are not in communities we currently serve, positions them for continued success.”
Brookdale is the nation’s largest senior-living community operator, with 737 facilities in 44 states. The company reported $3.5 billion of revenue in 2020, making it one of Nashville’s largest publicly traded health care companies, according to Nashville Business Journal research.
Brookdale received $300 million upfront as part of its joint venture deal with HCA, strengthening the Brentwood-based company’s liquidity and creating value for shareholders.
The sale of a large portion of BHS to LHC Group brings more liquidity to Brookdale, according to the release.
“We are looking forward to working with LHC Group, another national provider of healthcare services,” Brookdale CEO Cindy Baier said in the release. “This transaction will further strengthen our liquidity, maintain our 20% interest in the venture with HCA Healthcare, and ensure that high-quality home health and hospice services continue to be available to our residents at communities in these markets. I’m pleased that Brookdale’s residents will benefit from a seamless offering of services across our broad care continuum.”
Source: Nashville Biz Journal
