Brookdale Enters into Definitive Agreement to Sell a Majority Stake in its Home Health, Hospice and Outpatient Therapy business to HCA Healthcare
February 24, 2021 at 16:15 PM EST
NASHVILLE, Tenn., Feb. 24, 2021 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD) ("Brookdale"), the nation's leading operator of senior living communities, today announced it has entered into a definitive agreement to partner with HCA Healthcare through the sale of a majority stake in Brookdale Health Care Services ("BHS"). The partnership provides opportunities to improve healthcare service offerings within Brookdale's communities to enhance its residents' experience and health outcomes. Expanding residents' access to services and specialty care continues to be a cornerstone for helping seniors live their best lives. This venture will also help enhance the growth prospects for BHS given the complementary nature of services of both organizations.
HCA Healthcare is one of the nation's leading providers of healthcare services, comprising more than 2,000 sites of care. As a learning health system, HCA Healthcare uses its more than 32 million annual patient encounters to advance science, improve patient care and save lives. Brookdale will join HCA Healthcare's network of care through this venture. Expanding access to care and creating seamless transitions among types of care can help improve the overall quality and patient experience.
BHS, with 98% of its home health agencies earning a 4 or better Quality Star Rating from Centers for Medicare and Medicaid Services in December 2020, is a leader in the delivery of essential home health, hospice and outpatient therapy services to seniors, both those residing in Brookdale's communities and patients in their own homes. BHS operates 57 home health agencies and 22 hospice agencies across 26 states, along with 84 outpatient therapy locations.
Lucinda "Cindy" Baier, Brookdale's President and CEO, said, "The health and wellbeing of our residents is at the core of Brookdale's mission. Today's partnership with HCA Healthcare, a leading healthcare organization, will continue the high quality services delivered to our residents and patients, strengthen our liquidity position and provide meaningful opportunities for growth through better integration of services across the entire care continuum."
"HCA Healthcare's objective is to be the healthcare system of choice in the communities we serve through the development of comprehensive services and by delivering high quality, convenient care to our patients," said Sam Hazen, HCA Healthcare's CEO. "We believe this opportunity to partner with Brookdale will expand the services we offer and enhance our ability to deliver a better experience for our patients as well as for Brookdale residents."
Key Transaction Highlights
The transaction represents the latest material announcement in Brookdale's ongoing efforts to drive meaningful shareholder value, following Brookdale's July 2020 lease renegotiation with Ventas, Inc. and its January 2020 sale of its Entry Fee CCRC venture interest to Healthpeak Properties, Inc. These initiatives have significantly improved Brookdale's liquidity while positioning Brookdale's core senior housing operations for sustained growth.
Teleconference and Webcast
A webcast of the conference call will be available to the public on a listen-only basis at www.brookdale.com/investor. Please allow extra time prior to the call to visit the site and download the necessary software required to listen to the internet broadcast. A replay of the webcast will be available through the website following the call.
For those who cannot listen to the live call, a replay will be available until 11:59 PM ET on March 12, 2021 by dialing (855) 859-2056 (from within the U.S.) or (404) 537-3406 (from outside of the U.S.) and referencing access code "3060269".
About Brookdale Senior Living
About HCA Healthcare
Cautionary Note Regarding Forward-Looking Statements
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SOURCE Brookdale Senior Living Inc.