Brookdale Senior Living has agreed to sell majority stake in its home health, hospice and outpatient therapy business to HCA Healthcare for a purchase price of $400m.

Under terms of the deal, HCA Healthcare will acquire 80% of the equity in Brookdale Health Care Services (BHS), which operates 57 home health agencies and 22 hospice agencies across 26 states, and 84 outpatient therapy locations.

The total purchase price implies a $500m value for the segment.

Brookdale will retain a 20% equity interest in BHS, and its senior living residents will still have access to home health, hospice and outpatient services.

Brookdale noted that the new partnership with HCA Healthcare will help to improve healthcare service offerings within Brookdale’s communities to enhance its residents’ experience and health outcomes.

Brookdale president and CEO Lucinda Baier said: “The health and wellbeing of our residents is at the core of Brookdale’s mission. Today’s partnership with HCA Healthcare, a leading healthcare organization, will continue the high quality services delivered to our residents and patients, strengthen our liquidity position and provide meaningful opportunities for growth through better integration of services across the entire care continuum.”

HCA Healthcare has more than 2,000 sites of care including 185 hospitals, surgery centres, freestanding ERs, urgent care centres, and physician clinics, in 20 states and the UK.

For the deal, BofA Securities served as exclusive financial advisor and Bass, Berry & Sims acted as legal counsellor to Brookdale.

Truist Securities acted as exclusive financial advisor and Debevoise & Plimpton served as legal counsellor to HCA Healthcare. It received healthcare regulatory support from Waller.