HealthSouth exits long-term care business

LifeCare Holdings has entered into an agreement to acquire all of Birmingham, Ala.-based HealthSouth Corp.'s long-term care hospitals for $120 million, the former announced this week.

LifeCare currently operates 20 long-term care facilities in nine states. HealthSouth has eight long-term care properties with 414 total beds in Louisiana, Florida, Nevada, Pennsylvania and Texas, although its primary focus is on general acute care hospitals.

"In acquiring these hospitals from HealthSouth, we are not only expanding our network of facilities, but also enhancing our workforce of highly trained, compassionate caregivers," said Phillip B. Douglas, LifeCare's chief executive officer.

HealthSouth President and CEO Jay Grinney said the move allows his company to focus its energy on its inpatient rehab facilities. Proceeds from the sale will go to retire debt and use for its ongoing operational strategy, he added.

LifeCare officials said they have no intention of cutting services at the facilities they're acquiring, or eliminating any jobs. The deal is subject to regulatory review and is expected to close in the third quarter of 2011.

To learn more:
- read the LifeCare announcement
- here's HealthSouth's press release
- check out this Reuters piece