BIRMINGHAM, Ala. (December 16, 2020)—Brentwood, Tennessee-based Brookdale Senior Living is reportedly considering divesting its home health and hospice segment, PE Hub recently reported.
Brookdale is one of the largest operators of senior living communities in the United States. The company operates and manages independent living, assisted living, memory care and continuing care retirement communities—totaling 726 communities spanning 44 states.
Brookdale’s total revenue equalled $706 million in Q3 2020, down 13.3% compared to $815 million in Q3 2019. COVID-19 played a significant factor, with the company estimating that $71 million in lost revenue in Q3.
If Brookdale does shed its home health segment, the buyer would need to keep a contract with the company, analysts speculate, since much of the business comes from the skilled nursing side. The home health and hospice segment serves 17,000 patients as of Sept. 30.
A transaction would likely help Brookdale pay down nearly $4 billion in debt.
The company has not gone public with its plans and has declined to comment on future plans.
