Brookdale Senior Living is on track to close on the sale of 80% of its healthcare services division, which encompasses home health and hospice, in the early second half of this year to HCA Healthcare Inc., the company disclosed in its first quarter earnings report last week.
The sale, which will net the company $300 million, will strengthen the company’s liquidity position, executives said on an earnings call Friday.
Brookdale lost $108.3 million in the first quarter of 2021, as resident fee revenues slipped by 15.1% to $664.4 million. Resident fee revenue in the healthcare services segment slipped by 8.3% to $86.9 million, primarily due to a decline in home health average daily census that was a result of the pandemic and lower occupancy in the company’s communities, the company said. Brookdale operates over 700 senior living and retirement communities in the United States.
President and CEO Cindy Baier noted in the earnings call that the sell-off of the majority of the home health and hospice segment to HCA will allow residents to have improved access to physicians, lab services and other care services. “What has really changed over the last several years is the integration of healthcare and the ability to offer our residents a better integrated healthcare experience through this partnership with HCA,” said Baier, who noted that Brookdale will retain a 20% interest in the division.
For more coverage of the earnings call, see McKnight’s Senior Living.