KENNETT SQUARE, Pa., March 9, 2016 /PRNewswire/ — Genesis HealthCare (Genesis), one of the nation’s largest providers of post-acute care, today announced that it has signed an agreement with Compassus, a nationwide network of community-based hospice and palliative care programs, to sell the majority of Genesis’ home health and hospice operations for $84 million. The transaction is expected to close within the next 90 days, subject to regulatory approvals and other customary closing conditions.
Genesis’ home health and hospice operations, which were acquired via its February 2015 combination with Skilled Healthcare, are located in California, Idaho, Montana, and New Mexico. In 2015, Genesis’ home health and hospice businesses had aggregate revenue and EBITDA totaling approximately $70 million and $9 million, respectively. Any remaining hospice operations in Arizona and Nevada will be closed.
“Home health and hospice services are non-strategic businesses for Genesis to operate at this time, and we believe we can better allocate the capital by de-levering our balance sheet,” stated George V. Hager, Jr., Chief Executive Officer of Genesis. “We are pleased that our home health and hospice businesses will join a respected, quality provider like Compassus.”
Genesis continues to look strategically to monetize other non-strategic assets, that including the home health and hospice businesses, are expected to generate $100 million to $150 million of after tax cash proceeds. Genesis intends to use the sale proceeds to repay indebtedness.
“We are excited to welcome Genesis’ home health and hospice businesses to the Compassus family as we share very similar missions and values,” said James Deal, Compassus CEO. “As Compassus continues to grow, this further strengthens our ability and desire to provide greater access to a continuum of high-quality post-acute care, including hospice, palliative, and home health care services to even more patients, families and the health care professionals who serve them.”
About Genesis Healthcare
Genesis HealthCare (NYSE: GEN) is a holding company with subsidiaries that, on a combined basis, comprise one of the nation’s largest post-acute care providers with more than 500 skilled nursing centers and assisted/senior living communities in 34 states nationwide. Genesis subsidiaries also supply rehabilitation and respiratory therapy to more than 1,700 healthcare providers in 45 states and the District of Columbia. References made in this release to “Genesis,” “the Company,” “we,” “us” and “our” refer to Genesis Healthcare, Inc. and each of its wholly-owned companies. Visit our website at www.genesishcc.com.
Compassus is a nationwide network of community-based post-acute care services primarily focused on hospice, palliative and home health care. Based in Nashville, Tenn., the company opened its first hospice in 1979 and will operate more than 165 programs in 30 states across the U.S. The mission of Compassus is to honor life and offer hope to individuals facing serious or terminal illness by supporting them with a common culture focused on three core values: Compassion, Integrity, and Excellence. Compassus employs more than 4,000 colleagues. Our primary goals are to provide the highest quality post-acute home health, hospice and palliative care in every community we serve, and to be both the provider and employer of choice. For more information please visit compassus.com, follow the company on Facebook or call (877) 377-1607.
Jeanne Moore, Genesis HealthCare
Carol Lynn, Compassus
Lori Mayer, Genesis HealthCare
SOURCE Genesis HealthCare