Fiscal year 2013 saw $174 billion worth in healthcare mergers and acquisitions. As of this morning, there are $118-$130 billion worth of deals done or proposed in the past 45 days; this is a healthcare industry record. Adding to this rapid consolidation is the proposed acquisition of Gentiva Health Services (GTIV) and their long term medical care services, by Kindred Healthcare, Inc. (KND) Kindred offered $533 million in a cash and stock deal for Getntiva, and the proposed merger would add to Kindred's expanding footprint in the long term medical care space. This move would be significant due to the rapidly aging U.S. population. According to Sonali Basak of Bloomberg, "the number of people over the age of 65 expected to double to 21 percent of the U.S. population in the next few years."
Basak's research also found that due to Gentiva's stronghold in the home care market, their 500 facilities would allow Kindred's yearly revenue to exceed $7.1 billion and would serve over 127,000 patients in 47 states. It is important to point out that Gentiva turned down Kindred's first offer of $13 a share last month as well as their second offer of $14 a share earlier this week.
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