Community Health Systems announced that it will sell 80 percent of its home health and hospice division to Almost Family for $128 million. The deal is expected to close in the fourth quarter.
"While we are reducing our ownership interest in our home health and hospice division, it is important to us to retain a meaningful interest to help ensure appropriate post-acute care coordination for the benefit of our patients," said Wayne Smith, CEO of CHS.
CHS operates 59 home health locations in 22 states, posting $152.1M in revenue for 2015. It has 19 hospice locations in 9 states, with $30.4 million in 2015 annual revenue.
For FY 2016, Almost Family posted $401.1 million in home health revenues and $127.7 million in personal care services revenue. It currently has 167 home health locations in 16 states and 92 personal care services locations in 12 states.
As of noon EST, CHS shares were flat at $10.00/share. Almost Family was down 0.58 percent at $32.78.
Our Take: On the heels of our editorial this morning, CHS made another move, and this time it was a smart one. But with the substantial addition of home health locations and a new line of business, Almost Family should ready itself for rough waters in the coming months.
A table summarizing Almost Family and CHS locations by state can be downloaded here.