National Medical Enterprises, which two months ago announced a major restructuring of its businesses, said Monday that it will buy back 10 million shares, or nearly one-eighth of its stock.
The stock repurchase was valued at $216.2 million, based on Monday's closing price of $21.62 1/2, up 25 cents a share.
Earlier this year, NME reported plans to sell its health maintenance organization and several hospitals in order to focus on its nursing home, psychiatric and drug-abuse operations. Proceeds from the sale of those assets, along with short-term borrowing, will be used to finance the stock buyback, the company said.
The repurchase represents "a good investment . . . at this time," Chairman and Chief Executive Richard K. Eamer said.
Separately, Los Angeles-based NME, the nation's second-largest health services concern, said it will buy or lease 32 skilled nursing homes with 4,300 beds in eight states, hiking its current total of 66,000 beds by 6.5%.