Kindred Continues Expansion through Acquisitions

Posted by Jason Greis on August 28, 2010 under Articles, Industry News | Be the First to Comment

Kindred Healthcare has moved to expand its market presence in key cluster markets in California and Texas by signing definitive agreements to purchase five LTACHs in southern California for $180 million and three Texas-based nursing and rehabilitation centers for $38 million in two separate all-cash deals for a total purchase price of $218 million.  Both transactions require regulatory approvals and are expected to close later this year. Read More...

The Future of LTACHs: A Case Study for Industry Consolidation

Posted by Jason Greis on October 15, 2009 under Articles, Presentations | Be the First to Comment

I have attached a copy of the presentation (click here) that I gave at ALTHA’s Legal Issues Conference on Tuesday, October 13, 2009.  The presentation addresses how and why various macroeconomic and facility-specific financial, regulatory and operational pressures resulted in ”fire sales” in the LTACH market in 2009 and why 2010 will be a year in which over 60 LTACHs are expected to change ownership at much more attractive EBITDA multiples.  Please feel free to call me if you have any questions about my presentation. Read More...

GreisGuide to LTACHs Newsletter (March 2009)

Posted by Jason Greis on March 8, 2009 under eNewsletter | Be the First to Comment

• The American Recovery and Reinvestment Act Makes Technical Corrections to the MMSEA Favorable to LTACHs;
• $15 Billion in Federal Relief Spending to Become Immediately Available for State Medicaid Programs;
• “Heard it Through the Grapevine”–EBITDA Multiples Appear to be Down for Minority Interests in LTACHs;
• Employee Free Choice Act (EFCA) Update:  Me Thinks Thou Dost Protest;
• IRS Report Provides Insight into Community Benefit and Executive Compensation Practices of Tax-Exempt Hospitals;
• News Posted in February; and
• Upcoming Events

Please click here for a .PDF copy of this Newsletter. Read More...

“Heard it Through the Grapevine”—EBITDA Multiples Appear to be Down for Minority Interests in LTACHs

Posted by Jason Greis on under Articles, Industry News | Be the First to Comment

Over the past few months, a growing number of LTACHs have had an increasingly difficult time accessing credit markets and obtaining capital necessary to continue operations and pay staff and key vendors.  Many LTACHs are facing a “perfect storm” of reimbursement and credit woes, including (i) decreased and/or delayed Medicaid reimbursement; (ii) a payor mix that is shifting away from privately insured patients; (iii) growing bad debt; (iv) small operations size that limits economies of scale; (v) increased competition from new market entrants; (vi) increasing union organizing activities; (vii) decreasing reimbursement for key ancillary services; (viii) increasing payroll expenses; and (ix) increasing insurance costs.  Read More...