Kindred Healthcare Acquires Gentiva
The combined company, based in Louisville, Ky., will be the nation's largest provider of long-term care, hospice and home-health services.
The Wall Street Journal: Kindred Healthcare Gets Gentiva After Five-Month Chase
The combined company, which will be based in Louisville, Ky., will be the nation’s largest provider of long-term, acute-care hospitals; inpatient rehabilitation facilities; and hospice and home-health services, with annual revenue of about $7.1 billion, according to a statement Thursday. Kindred’s offer of $19.50 a share in cash and stock represents a 17 percent premium to Gentiva’s closing price on Wednesday, and is above the $13-a-share offer Kindred initially made earlier this year. Including the assumption of debt, the deal is valued at about $1.8 billion (Dulaney and Whalen, 10.9).
Elsewhere, employers are capping what they pay for some health procedures, but the savings may not be all that large --
Kaiser Health News: Capsules: Study Finds Savings Low For Employers Capping Their Payments For Treatments
In an effort to slow health care spending, more employers are looking at capping what they pay for certain procedures -- like joint replacements -- and requiring insured workers who choose hospitals or medical facilities that exceed the cap to pay the difference themselves. But a study out Thursday finds employers might be disappointed with the overall savings. While the idea, known as “reference pricing,” does highlight the huge variation in what hospitals and other medical providers charge for the same services, the report says, it does little to lower overall health care spending (Appleby, 10/9).