Kindred Healthcare Inc (KND.N) will buy RehabCare Group Inc (RHB.N) for about $900 million to create the largest U.S. carer for patients recovering from life-threatening illness, driving its shares to a 2-year high. The health industry is gearing up for wide-ranging reforms likely by the mid-year, which could include the government bundling patients' reimbursement payments rather than paying separately for services and drugs. While homecare and assisted living sectors have seen several recent deals, this is the first sizeable deal for some time in the post-acute care market.
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