A subsidiary of KindredHealthcare (NYSE:KND) has agreed to acquire Homecare Advantage for about $2 million in cash.
Kindred, a long-term care (LTC) and rehabilitation services provider, generates about $2 billion in annual revenue from running facilities in more than 2,000 locations.
Homecare Advantage gets about $2.5 million in annual revenue from providing home care services in the Los Angeles area.
The deal will help Kindred expand its Los Angeles operations, the company said.
Kindred already has a nursing and rehabilitation center, nine transitional care hospitals, one hospital-based sub-acute unit, three home health care locations and three hospital-based acute rehabilitation units in the Los Angeles area.
Paul Diaz, the chief executive officer of Kindred, said his company is still shopping for home care and hospice businesses.
This is a good time to expand a post-acute care business because of public and private health plans' interest in integrating different types of care, Diaz said.