Apollo bid, backed out before striking final LifePoint deal

LifePoint's home office in Brentwood

LifePoint Health plans to launch a new health system via its merger with Louisville-based specialty health provider Kindred Healthcare. 

Upon close of the transaction, ScionHealth will consist of 79 facilities in 25 states, including 61 of Kindred’s long-term acute care hospitals and 18 of LifePoint’s community hospitals. According to a press release, the facilities are well aligned in terms of operational and strategic approach, and together will form a system with "unique and compelling" opportunities for growth.

ScionHealth will be based in Louisville and be led by CEO Rob Jay, previously the executive vice president of integrated operations at LifePoint.

The proposed system and LifePoint will operate as two distinct entities, with separate boards of directors and leadership teams. LifePoint CEO David Dill will retain his role, while Kindred CEO Benjamin Breier will depart the company as a result of the transaction. 

“As our teams began to examine how best to bring together the operations of LifePoint and Kindred, it became increasingly clear that we had the right mix of talent, services and assets to reorganize into two strong companies to better serve our patients and communities,”  Dill said in the release. “In forming two companies with unique areas of focus, LifePoint Health and ScionHealth can improve access to quality care, create more opportunities for our employees, and invest in our communities.”

Upon the completion of regulatory approvals and satisfaction of customary closing conditions, the acquisition of Kindred and the launch of ScionHealth are expected to be completed by the end of the year. At closing, LifePoint and ScionHealth anticipate entering into transition services arrangements to support operations at both companies.

Earlier this week, the company also announced a partnership with patient engagement platform Loyal to build out new solutions LifePoint will be the first to deploy. Once fully operational, Loyal’s platform will impact patients in a comprehensive manner — from researching care and scheduling appointments to patient registration and post-care communications. In addition, Loyal’s platform will assist with LifePoint’s patient acquisition and referral strategies.