Kindred Healthcare Inc. (NYSE: KND) is paying $195 million for Centerre Healthcare Corp., which operates rehabilitation hospitals.
Centerre, headquartered in Franklin, Tennessee, operates 11 inpatient rehab centers with 612 beds, in partnership with acute care hospital systems. The company is expected to generate $200 million in revenue for 2014.
Kindred is currently in the process of buying Gentiva Health Services Inc. (Nasdaq: GTIV) for $1.8 billion to build up hospice and home health-care services. That deal was announced in October. Kindred originally offered to buy Gentiva for $533 million in May.
Kindred plans to establish a business line called Kindred Hospital Rehabilitation Services that will combine the company's rehabilitation hospitals with Centerre's. The unit will have 384 locations in 36 states.
Kindred, headquartered in Louisville, Kentucky, has been very acquisitive over the past year. In February, the company closed a $22 million deal for two nursing centers. In December, the health care company closed a $95 million deal for Senior Home Care Inc. In November 2013, the company bought nine nursing centers for $83 million.
Medical service providers have been consolidating as the Affordable Care Act brings more patients into the health care system. Earlier in November, Athletic Physical Therapy announced a deal for Accelerated Rehabilitation Centers. In October, Team Health Holdings Inc. (NYSE: TMH) picked up Premier Physician Services. For more on the trend, see ACA Reshuffles the Deck.