Kindred Healthcare and Mercy Hospital Oklahoma City have acquired Everest Rehabilitation Hospital of Oklahoma City, the organizations announced today. Kindred and Mercy will operate the hospital, now renamed Mercy Rehabilitation Hospital Oklahoma City South, through their existing joint venture. Financial terms were not disclosed.
Mercy Rehabilitation Hospital Oklahoma City South is a 36-bed rehabilitation hospital located in the southern part of Oklahoma City.
Kindred and Mercy also operate Mercy Rehabilitation Hospital Oklahoma City, which opened in October 2012 and is located in the northern part of the city. Mercy Rehabilitation Hospital Oklahoma City currently has 50 beds and is adding a 10,000-square-foot patient wing that will increase capacity by 32%, with 16 additional beds and two additional patient care areas.
Both Oklahoma City hospitals serve patients recovering from stroke and other long-term illnesses or injuries and feature specialized clinical programs.
Mercy Rehabilitation Hospital in northwest Oklahoma City frequently operates at or near capacity, which limits the ability to expand services or admit additional patients for needed rehabilitation care. The additional beds under construction at the northern location, as well as the addition of a second facility in southern Oklahoma City, will help meet a growing demand for rehabilitation services, the hospitals said Tuesday.
WHAT'S THE IMPACT
Mercy Rehabilitation Hospital Oklahoma City was named the best physical rehabilitation center in Oklahoma and one of the best in the country by Newsweek magazine in 2020.
Kentucky-based Kindred Healthcare is a specialty hospital company delivering acute health services in long-term acute care hospitals, inpatient rehabilitation hospitals, acute rehabilitation units and behavioral health lines of business, all specializing in treating the most medically complex patients.
Mercy, named one of the top five large U.S. health systems for four consecutive years by IBM Watson Health, serves millions annually.
THE LARGER TREND
Since 2015, global healthcare M&A has increased in value every year except for 2017, according to S&P Global.
A Kaufman Hall report from Q2 2020 also reported a dip in M&A activity, but experts believe the pandemic may be strengthening the rationale for future partnerships.
"Even more powerful than COVID right now is the path of transformation healthcare was on," said Anu Singh, managing director of mergers, acquisitions and partnerships at Kaufman Hall, at the time. "There are new capabilities within health systems, efficiency around expenses and care management, and the migration to value instead of volume. Strategic partners were looking for strategic partners pre-COVID, and that has continued."
ON THE RECORD
"As an Oklahoman, I am honored to be part of expanding services to more patients in Oklahoma City as we continue to grow with Mercy," said Sharon Smeltzer, Division Vice President – West, Kindred Hospital Rehabilitation Services and the first chief executive officer of Mercy Rehabilitation Hospital. "This expansion is possible because of the hard work, dedication and commitment of our co-workers to providing high-quality and compassionate rehabilitative care."
"We know our patients need access to more rehab services to aid in their recovery and it's important to us to be able to offer a complete continuum of care at Mercy," said Zack Dawson, vice president of operations and post-acute services at Mercy Hospital Oklahoma City. "We're excited those services will soon be available for even more patients in a convenient location."