Subject: Important Update on the Sale of AHC and Rehab America

 

Dear Team,

I want to start by recognizing the incredible work we’ve accomplished together. Over the years, we’ve built American Health Partners into a leading provider of healthcare services for seniors, and that success has garnered significant attention. The interest in acquiring parts of our business is a testament to the strength of our teams, the quality of care we provide, and the reputation we’ve earned. This success has paved the way for today’s important announcement.

After thoughtful consideration and extensive negotiations, the Board of Directors has reached a definitive agreement to sell our American Health Communities (AHC) and Rehab America divisions to CareTrust, a publicly traded Real Estate Investment Trust (REIT) and Eagle Arc, a real estate investment group with a strong focus on healthcare properties. Both CareTrust and Eagle Arc have a deep understanding of our sector, and they are committed to continuing the strong foundation we’ve built.

Here are the key details of this transaction:

• CareTrust and Eagle Arc will own the AHC locations, ensuring the physical assets remain part of a strong, experienced real estate investment portfolio.
• Four respected operators—Ensign Group, Links Healthcare Group, PACS Group, Inc., and Champion Healthcare—will lease and manage the AHC facilities, overseeing daily operations. (please click here for the list of Operators and the AHC locations they will operate)
• Our goal is to ensure a smooth transition that maintains continuity, stability, and our high standard of care for residents, patients, and their families.
• The commitment to quality care remains our top priority, and we will work closely with the new operators to ensure a seamless transition.
• The transition process will begin almost immediately and will be concluded by the end of the year.

For those of you working in AHC facilities or for Rehab America, your skills and experience are in high demand. These new operators need good people to care for residents and patients and they are eager to connect with you. These operators will be visiting your buildings soon to meet you and see firsthand the excellent work you do. Over the coming days we will be scheduling these site visits and will communicate the dates/times in your building. This will also provide an opportunity for you to meet their leaders and to help you learn about their companies, their health care benefits, and other employee programs. Your job is not expected to change, and we will be collaborating with the new operators to ensure a seamless transition for you to their payroll systems, healthcare benefits and HR platforms. Stay tuned for more information as we move through this transition.

To reference Frequently Asked Questions (FAQ) about the transaction please Click Here. If you have questions about the transaction, please send them to: Answers@AmHealthPartners.com

For American Health Partners, this sale is a pivotal step as we refine our focus on these four divisions: American Health Plans, TruHealth, Unity Psychiatric Care, and AmPharm. With this streamlined approach, we’ll have the agility to:

• Expand into new markets
• Accelerate our value-based care model
• Deepen our commitment to improving healthcare for seniors

As we write the next chapter of American Health Partners, the future holds tremendous opportunities for growth and innovation. By focusing on these core areas, we’ll be better positioned to lead the healthcare industry forward, exploring new ways to enhance care, deliver value, and improve outcomes.

Thank you for your dedication, resilience, and hard work. I’m proud of all that we’ve accomplished together, and I’m excited about the opportunities ahead.

Best regards,

Mike Bailey
President and CEO
American Health Partners