ST. LOUIS, MO – Two leading operators of long-term acute care hospitals in the United States have completed a merger.
The St. Louis-based RehabCare Group has joined with Triumph HealthCare Holdings of Houston. RehabCare is a provider of post-acute services, managing rehabilitation programs in more than 1,250 hospitals and skilled nursing facilities in 41 states and owning and operating 33 rehabilitation and long-term acute care hospitals.
Triumph HealthCare specializes in providing long-term acute care services to medically complex patients, currently operating 20 LTACHs in seven states, with two hospitals scheduled to be added by mid-2010.
The transaction is RehabCare's largest investment to date toward the development of its hospital operations and its stated intention of creating a post-acute continuum of care network in markets across the country.
According to John H. Short, RehabCare's president and CEO, the combined organization will represent the fourth largest post-acute hospital operator and the third largest LTACH provider in the country.
"We are excited to begin the process of blending our strengths to elevate the role of our hospital division and achieve a more diverse company with the potential to reach more patients in need of specialized, restorative care," he said.
Brock Hardaway, Triumph HealthCare's president and CEO, will lead the combined company's LTACH business, under the direction of RehabCare Senior Vice President of Hospital Operations Kevin Gross.
Hardaway joined Triumph HealthCare in 2005 and previously managed more than 30 hospitals in the Select Medical Corporation.
"Brock brings extensive experience in the industry and has helped position Triumph as the paragon of LTACH management and service delivery," said Short. "We look forward to integrating our best practices, technologies and the talents of our now-more-than 18,000 people."
RehabCare officials said the transaction is being financed through a combination of committed bank financing, the net proceeds of the equity offering that closed on Nov. 18, 2009, and cash on hand.
Concurrent with the acquisition of Triumph HealthCare, RehabCare closed on a new senior secured credit facility consisting of a $450 million term loan B facility and a $125 million revolving credit facility.
