NEWS | Companies
RehabCare pays $570 million
for hospital rehab provider
» CapitalSource Inc. plans to sell
all of its healthcare net lease portfolio to
Omega Healthcare Investors Inc. The sale,
which covers 143 long-term care facilities,
is expected to total $860 million. Capital- By Liza Berger largest LTACH provider in the
Source is a commercial lender. RehabCare Group Inc., a country, according to Rehab-
major provider of therapy Care officials.
» Kindred Healthcare Inc, returned services to skilled nursing “This transaction builds
to the black in the third quarter of 2009. facilities (SNFs), has agreed out our post-acute continuum
Photo: RehabCare Group Inc.
That compares to a loss of $21 million in to purchase Triumph Health- of care in 11 markets where
the same quarter last year. Profits totaled care, a developer and operator there is overlap with our other
more than $5 million. Revenues rose by of long-term acute care hospi- services, creating opportuni-
6% to more than $1 billion in the third tals. The price of the acquisi- ties for synergies, improved
quarter of 2009. Still, the company is “con- tion is $570 million. patient flow and enhanced
cerned in the near term with weakness in The purchase is expected to Dr. John Short is president and care,” Short said.
both Medicare and Medicaid rates in our bolster RehabCare’s hospital CEO of RehabCare Group Inc. Skilled nursing rehabili-
nursing center business,” President and business, which generated tation services represent the
CEO Paul J. Diaz said in a statement. The hospital operating revenues of mass to leverage our infra- largest portion of RehabCare’s
company raised its 2009 earnings guid- nearly $40 million in the third structure and expand our business. Operating revenues
ance for continuing operations. quarter of 2009. Triumph, capabilities in a fundamental in the third quarter totaled
which is based in Houston, component of the post-acute about $123 million. It has
» Five Star Quality Care Inc. earned operates 20 hospitals, includ- continuum,” said Dr. John H. more than 1,000 SNF contract
a profit in the third quarter of 2009 ing 11 freestanding and nine Short, president and CEO of therapy locations.
after posting a $2.25 million loss in the co-located long-term acute RehabCare, in a statement. RehabCare’s third divi-
same period last year. It earned about $4 care hospitals (LTACHs). The additional LTACHs sion, hospital rehabilitation
million in the quarter. Revenues in the The deal was expected to also will create a balanced services, comprises inpatient
quarter totaled about $297 million, a 6% close Dec. 1. portfolio of post-acute ser- rehabilitation facilities, sub-
increase over last year. For the first nine “This transaction, our larg- vices, he noted. The combined acute services and outpatient
months of 2009, Five Star earned $38 est to date, will significant