ScionHealth will launch at the close of the previously announced acquisition of Kindred via a combination of Kindred’s long-term acute care hospitals and 18 of LifePoint’s community hospitals
Healthcare veteran Rob Jay to serve as CEO of the new company, which will be based in Louisville, Kentucky, and focused on providing high-quality acute and post-acute care as well as investing in community healthcare
BRENTWOOD, Tenn. & LOUISVILLE, Ky., October 26, 2021--(BUSINESS WIRE)--LifePoint Health and Kindred Healthcare today announced plans to establish a new healthcare company operating under the name ScionHealth upon closing of their previously announced transaction.
Headquartered in Louisville, ScionHealth will consist of 79 hospital campuses in 25 states, including Kindred’s 61 long-term acute care hospitals and 18 of LifePoint’s community hospitals and associated health systems. These facilities are well-aligned in terms of operational and strategic approach, and together they will form a strong and cohesive system with unique and compelling opportunities for growth. ScionHealth will be led by a management team drawing from both LifePoint and Kindred. Rob Jay, who currently serves as executive vice president of integrated operations at LifePoint, will serve as the Chief Executive Officer (CEO) of ScionHealth.
"As our teams began to examine how best to bring together the operations of LifePoint and Kindred, it became increasingly clear that we had the right mix of talent, services and assets to reorganize into two strong companies to better serve our patients and communities," said David Dill, president and CEO of LifePoint. "In forming two companies with unique areas of focus, LifePoint Health and ScionHealth can improve access to quality care, create more opportunities for our employees, and invest in our communities."
At the close of the transaction, LifePoint will combine its 65+ remaining hospital campuses as well as its network of physician practices and outpatient centers with Kindred’s rehabilitation and behavioral health businesses. This will further establish LifePoint as a leading diversified healthcare delivery network focused on providing high quality, integrated, community-based care at sites of care across the healthcare continuum. LifePoint will continue to be headquartered in Nashville, and David Dill will remain its president and CEO.
"The opportunity to create two leading healthcare companies through this transaction is transformational for our businesses," said Benjamin A. Breier, CEO of Kindred Healthcare, who, upon close, will depart Kindred Healthcare as a result of the transaction. "With the launch of ScionHealth and growth of LifePoint Health, our organizations will advance healthcare for the communities we serve, while building upon Kindred’s legacy and commitment to the Louisville business community as a strong corporate citizen, significant employer, and care innovator. Our patients and partners will greatly benefit from two well-capitalized and diversified companies that are unique in their focus but also share a deep commitment to quality care, collaboration, and creating great workplaces."
LifePoint and ScionHealth will both be well capitalized businesses focused on growth and grounded in commitments to outstanding patient care and quality outcomes. The companies will have separate leadership and boards of directors. Each ScionHealth hospital will operate under the same name it does today, and their communities will continue receiving quality care delivered by the providers they know and trust. By prioritizing care at the bedside, embracing collaboration, and investing in innovative services and technology, the companies will continue to advance clinical and compliance excellence, make healthcare more accessible and support healthier communities.
"The prospect of launching ScionHealth is exciting for our teams and our communities, and I’m honored to serve as the company’s founding CEO," said Jay. "In forming ScionHealth, we selected a cohesive group of community health systems across the LifePoint and Kindred footprint that would benefit from focused attention, resources and investment. We are looking forward to extending the legacies of LifePoint Health and Kindred Healthcare, honoring Kindred’s important corporate leadership role in Louisville, and creating a new platform for growth and innovation in community healthcare."
Upon the completion of regulatory approvals and satisfaction of customary closing conditions, the acquisition of Kindred and the launch of ScionHealth are expected to be completed by the end of the year. At closing, LifePoint and ScionHealth anticipate entering into transition services arrangements to support operations at both companies.
About LifePoint Health
LifePoint Health® is a leading healthcare company dedicated to Making Communities Healthier®. Through its subsidiaries, it provides quality inpatient, outpatient and post-acute services close to home. LifePoint owns and operates community hospitals, regional health systems, physician practices, outpatient centers and post-acute facilities across the country. More information about the company can be found at www.LifePointHealth.net.
About Kindred Healthcare
Kindred Healthcare, LLC is the nation’s leading specialty hospital company delivering acute health services in its long-term acute care hospitals, inpatient rehabilitation hospitals, acute rehabilitation units, and behavioral health line of business, all specializing in treating the most medically complex patients. Based in Louisville, Kentucky, and ranked as one of Fortune magazine’s Most Admired Healthcare Companies for nine years, Kindred’s mission is to help our patients reach their highest potential for health and healing with intensive medical and rehabilitative care through a compassionate patient experience. For more information, go to www.kindredhealthcare.com. You can also follow us on Facebook, LinkedIn, and Twitter.
This communication contains certain information, including statements as to the expected timing, completion and effects of the proposed transaction involving LifePoint and Kindred Healthcare, which may constitute forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. Such forward looking statements include, among others, statements about the benefits of the proposed transaction, including future financial and operating results, plans, objectives, expectations for LifePoint and other statements that are not historical facts. Such statements are based on the current beliefs and expectations of management and are subject to significant risks and uncertainties outside of its control. These risks and uncertainties include, among others: the possibility that the anticipated benefits from the proposed transaction will not be realized, or will not be realized within the expected time periods; the occurrence of any event, change or other circumstances that could give rise to termination of the proposed transaction agreement or cause the proposed transaction not to close within the anticipated timeline or at all; risks associated with the disruption of management’s attention from ongoing business operations due to the proposed transaction; risks associated with the retention of key employees; and the inability to obtain necessary regulatory approvals of the proposed transaction or the receipt of such approvals being subject to conditions that are not anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as otherwise required by law, neither LifePoint nor Kindred Healthcare undertakes any obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise.
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