Reuters is reporting that Kindred is working with investment banks to explore a sale “according to sources familiar with the matter.” Multiple reports say the company is in “late-stage” talks with multiple suitors for its skilled nursing facility business.
Facing pressure from investors to reduce its exposure to Medicare patients, Kindred’s stock price has fallen by a third over the last year. But shares surged Thursday afternoon and have continued to climb today, up nearly 7 percent in midmorning trading, to $9.57.
The Reuters report speculates that Humana could be an interested party. Carl O’Donnell writes, “Humana has already been investing significantly in its home health capabilities, Humana At Home, which the insurer touts as a compliment to its Medicare Advantage franchise.” Humana’s shares were trading down slightly on Friday. IL reached out to Humana for comment but has not received a response.
Kindred is the largest home health, hospice and community care provider in the United States. The company employs around 100,000 people who take care of more than 1 million patients annually at 2,700 locations in 46 states, including long-term acute care hospitals, nursing centers and rehabilitation units, according to IL’s latest reporting.
In November, the company announced its plan to exit the skilled nursing facility business and divest facilities.
Kindred spokeswoman Susan Moss said via email: “While the Company does not comment on rumors and speculation, we can confirm that, as announced in November, Kindred is working with advisors and engaging with interested parties as part of our plan to exit the skilled nursing facility business and divest facilities.”
This story may be updated.