Integrated Health Services buys Minn. rehabilitation company

December 09, 1993|By Patricia Meisol | Patricia Meisol,Staff Writer

Integrated Health Services Inc. said yesterday it has purchased a private Minnesota rehabilitation company and would use it to expand rehabilitation services in its own chain of nursing homes.

The Owings Mills company bought Achievement Rehabilitation Inc. of Minnetonka, Minn., for $22.5 million in Integrated Health Services stock, said Marc Levin, senior vice president. He said Achievement Rehabilitation's owners and managers will run a new division that will manage Integrated Health's rehabilitation business.

Integrated Health is trying to develop a full range of services for long-term care that it can offer insurance companies for a flat, per-person charge. It pioneered a system of hospital-like care units inside nursing homes that cut the cost of recovery from operations, accidents and other traumas by as much as 60 percent.

Integrated Health last week completed the acquisition of the U.S. nursing home operations of Trizec Corp. Ltd. in a deal that essentially doubles its size. It now operates 106 facilities nationwide and is expected to report combined revenues of at least $330 million. Integrated Health currently has annual revenues of $30 million from the rehabilitation side of its business.

Integrated said Achievement, which operates in Minnesota, Florida, Ohio and Indiana, had contracts to provide physical, speech, and occupational therapies for 48 nursing homes in 1992. It reported revenues of $16.5 million that year and $30 million for the first nine months of this year.

Shares of Integrated closed unchanged, at $29.50, yesterday in trading on the New York Stock Exchange.

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