In a bid to pay off a large chunk of its debt, Kennett Square-based Genesis Healthcare has agreed to sell its home health and hospice operations to Nashville-based Compassus for $84 million. Genesis CEO George Hager said he viewed the businesses to be sold as “non-strategic.” (Philadelphia Business Journal)
Genesis HealthCare signed an agreement Tuesday to sell the majority of its home health and hospice operations to Compassus for $84 million.
The sale is expected to close within the next 90 days, subject to regulatory approvals and other customary closing conditions. Genesis intends to use the sale proceeds to repay debt. Genesis Healthcare is selling a majority of its home care and hospice businesses for $84 million.
Compassus, based in Nashville, Tenn., operated a nationwide network of more than 150 community-based hospice and palliative care programs in 28 states.
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 Healthcare.
Based in Kennett Square, Pa., Genesis Healthcare operates more than 500 skilled nursing centers and assisted/senior living communities in 34 states nationwide. In addition, its subsidiaries supply rehabilitation and respiratory therapy to more than 1,700 health care providers in 45 states and the District of Columbia. The company acquired its home health and hospice operations — which last year generated revenues of $70 million and $9 million, respectively — early last year as part of its merger with Skilled Healthcare.
Under the terms of the agreement, Compassus in acquiring Genesis Healthcare’s home health and hospice businesses in California, Idaho, Montana, and New Mexico. The Chester County company’s remaining hospice operations in Arizona and Nevada will be closed.
James Deal, the CEO of Compassus, said the acquisition will further strengthen his company’s ability to provide patients with greater access to a continuum of post-acute care, including hospice, palliative, and home health care services.
When the deal is completed, Compassus will operate more than 165 programs in 30 states.