LOUISVILLE, Ky.– Kindred Healthcare Inc. (NYSE:KND) announced it has signed a definitive agreement to acquire Western Reserve Senior Care. Based in Cleveland, Ohio, Western Reserve is a physician led, primary care practice that delivers care in home-based settings (assisted living facilities, independent living and home).
Western Reserve’s physicians, nurse practitioners and nurses provide primary care, specialty care and urgent care services for seniors who cannot leave home in the Company’s Cleveland Integrated Care Market.
Western Reserve is a strategic addition to Kindred’s new Care Management Division as the company develops programs and capabilities which include physician coverage across settings to better manage episodes of care.
Financial terms of the transaction were not disclosed. The company expects to finance the transaction with proceeds from its revolving credit facility. The transaction is subject to customary conditions to closing and is expected to close in the third quarter of 2013.
Founder and principal Dr. William Mills will become vice president, medical affairs for the company’s Care Management Division and chief medical officer for Kindred at Home, the company’s home health and hospice division. He also will provide medical leadership in Kindred’s Cleveland Integrated Care Market. Dr. Mills will report to Jon Rousseau, president of Kindred’s Care Management Division. Mills is a Cleveland native who trained at Case Western Reserve and MetroHealth Medical Center. He is on the active medical staff of the Cleveland Clinic and University Hospitals Health Systems.
Cleveland is one of Kindred’s Integrated Care Markets which features two transitional care (“TC”) hospitals (certified as long-term acute care (“LTAC”) hospitals), three nursing and rehabilitation centers, one co-located hospital-based sub-acute unit, two assisted living facilities and two home health locations.
“In a patient-centered care model, physicians that follow a patient across care settings will play a central role in helping patients Continue the Carethrough a post-acute episode,” said Paul J. Diaz, Kindred’s CEO. “As we develop and test new models of care, Dr. Mills and his team will help us grow and succeed under today’s delivery and payment system while preparing for future models. This includes advancing Kindred’s efforts to create “Medical Homes” through our Care Management Division, and to provide critical support for our Centers for Medicare and Medicaid Services (“CMS”) Bundled Payment for Care Improvement pilot in the Cleveland market. His experience will strengthen our partnerships with Cleveland Clinic physicians and nurse practitioners and other local hospitals to improve quality outcomes and lower Medicare fee-for-service rates.”