Industry giant Brookdale Senior Living appears to be considering a divestiture of its home health and hospice segment, according to sources. The move would improve the company’s liquidity, helping it pay down almost $4 billion in debt.
A potential transaction likely will include a contract ensuring the stability of Brookdale’s No. 1 customer and revenue stream: its skilled nursing business. Although still early in the process, possible outcomes could include a private-equity investor or consortium, say sources, who add that Bank of America is providing Brookdale with sell-side financial advice as the process progresses.
Brookdale serves 17,000 patients (as of Sept. 30) through its home health and hospice business.
