Following Wednesday’s announced divestment of most of its home health, hospice and therapy business to HCA Healthcare, Brookdale EVP and CFO Steven Swain said Thursday that the move will strengthen the company’s liquidity position, enabling it to remain “judicious” with investments moving forward.
With $575 million in liquidity at the end of December and net proceeds from the HCA deal expected to be $300 million (after transaction related expenses and adjustments, and payroll tax deferral program balances not yet repaid), Brookdale’s future looks bright, executives said during a call on Thursday.
CEO Lucinda “Cindy” Baier said she was thrilled with Wednesday’s announcement and that she believes that “HCA has the ability to accelerate growth of the home health and hospice business, and we look forward to sharing in that growth through our retained minority interest.”
Brookdale disclosed Wednesday it was selling 80% of its home health, hospice therapy business to HCA for a total of $400 million. The move is designed to help Brookdale concentrate on its core senior housing operations.
