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Kindred Nursing Centers Accused of Taking Taxpayer Dollars Just Before Closing Their Doors

As part of a program to increase pay for the lowest-paid workers within long term care facilities and nursing homes, the state of Massachusetts earmarked $35.5 million in 2016 to help compensate these employees.  The Boston Globe reported earlier this year that much of the pay actually went to boosting the salaries of high-level executives within nursing homes. Although the claim is being disputed by nursing homes throughout the state, MA Representative Nick Collins is pointing a spotlight on Kindred Nursing Centers, who took the payout and then announced shortly after that they would be closing 5 facilities and laying off 600 more employees in their facilities in Boston, Canton, Dedham, and Needham, MA. Kindred has denied the allegations and has vowed to work with officials on an investigation.

Kindred Selling Off Facilities to Humana and Private Equity Firms
Kindred Nursing Centers is a chain of rehabilitation and nursing centers based out of Louisville, KY. There are currently 13 Kindred-owned companies in the state of Illinois, including 2 hospice centers in Arlington Heights and Oak Brook, 5 Kindred at Home companies, and 6 Kindred Hospitals which function as extended care facilities that promise to provide hospital-level care.

In December, Kindred announced that it would be selling off all of its facilities to 2 private equity firms and Humana, the insurance company, for $4.1 billion. According to Modern Healthcare, Humana, TPG Capital and Welsh, Carson, Anderson & Stowe will split Kindred into two companies. TPG Capital and Welsh, Carson, Anderson & Stowe will assume ownership of long-term care hospitals and inpatient rehab facilities. Together, both private equity firms and Humana will work together as one company to operate Kindred’s home health, hospice, and community care facilities. Modern Healthcare describes Kindred as “the nation’s largest operator of post-acute facilities in home and hospice care, rehabilitation services and long-term acute care.” The company’s revenue in 2016 was reported to be just over $7 billion. While closures in other states have not been announced, industry analysts believe that Humana’s acquisition of Kindred will help them lower the costs associated with hospital care by approving patients to be sent for extended care at one of their newly-acquired long-term care facilities.