Integrated Health adds LTC centers

Maryland Watch

January 03, 1998

Owings Mills-based Integrated Health Services Inc. yesterday completed its purchase of long-term care centers from Healthsouth Corp. for $1.25 billion in cash and debt, making it the largest post-hospital company in the United States.

The centers, which offer more medical services than a traditional nursing home, originally belonged to Horizon/CMS Healthcare Corp., which was recently bought by Healthsouth.

The deal, which was announced Nov. 3, includes 139 long-term care facilities, 12 specialty hospitals, 35 institutional pharmacies and more than 1,000 rehabilitation therapy contracts. Integrated Health paid $1.15 billion in cash and assumed about $100 million in debt to buy the facilities.

IHS shares rose 93.75 cents to close at $32.125 yesterday; shares of Healthsouth fell 81.25 cents to $26.9375.

The purchase is part of a consolidation trend in the health-care market as companies seek greater size to increase their bargaining power with managed-care providers.

Separately, Integrated Health said yesterday that it boosted its credit line from $1.75 billion to $2.15 billion.

Pub Date: 1/03/98

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