Ventas Inc.detailed certain agreements entered into with tenant Kindred Healthcare Inc. thataim to better position Ventas' portfolio ahead of new long-term acute care patientcriteria Kindred will put into place Sept. 1.
The companies agreed to immediately reallocate annual rent onseven long-term acute care hospitals Ventas leases to Kindred to other more productivepost-acute assets. The annual rent on those seven facilities is currently about$8 million. The total annual rent on Ventas' post-acute care portfolio operatedby Kindred will not change.
Further, Ventas agreed to sell those seven long-term acute carehospitals, and it expects to receive $6.5 million in connection with the sale. Closingis subject to conditions to closing, including the receipt of all licensure, regulatoryand other approvals.
Ventas explained in an April 4 release that the new long-termacute care patient criteria rules change the way providers are paid for patientcare, depending on whether patients meet certain clinical criteria. It said thatthe remaining 31 long-term acute care facilities Kindred leases from Ventas arewell-positioned to succeed under the new patient certification criteria rules.
Kindred said in a separate statement that it agreed to sell 12long-term acute care hospitals to Curahealth LLC for $27.5 million. Curahealthis an affiliate of a private investment sponsored by Nautic Partners LLC.