Kindred Healthcare is selling a dozen long-term acute care hospitals to Curahealth for $27.5 million.
Curahealth is an affiliate of private investment fund Nautic Partners.
In a release Monday, Louisville, Ky.-based Kindred said it is divesting the hospitals to focus on core facilities.
The hospitals, which have a total of 783 licensed beds, are located in Arizona, Louisiana, Massachusetts, Oklahoma, Pennsylvania and Tennessee, Kindred said in the release.
“Optimizing our LTAC hospital portfolio is a key element of our LTAC criteria mitigation strategy, and this transaction is another important step forward in our efforts,” Kindred CEO Benjamin Breier said .
The divested hospitals are expected to generate full-year revenue of about $215 million.
The deal is expected to net about $21 million, subject to adjustments for financial and other post-closing conditions. Kindred anticipates that the sale will be completed in the third quarter of 2016.
Kindred said it would report pre-tax charges of about $54 million related to Ventas lease amendments and about $45 million to $55 million related to the transaction with Curahealth within fiscal 2016.
The deal, meanwhile, will yield future cash income tax benefits for Kindred of about $38 million, the company said.