TOLEDO, Ohio, April 25, 2018 /PRNewswire/ -- ProMedica, a
mission-based, not-for-profit healthcare system focused on
improving health and well-being across the care continuum,
announced today it is planning to acquire HCR ManorCare, the
nation's second largest provider of post-acute services and
long-term care.
The partnership will enable ProMedica to gain immediate scale in
the fast-growing home health and post-acute care markets, obtain a
best-in-class portfolio of assets staffed by highly trained and
dedicated healthcare professionals, and develop a diversified
business that can better evolve with the current healthcare
industry.
"We want to take down the wall between traditional hospital and
post-acute care services in an effort to enhance the health and
well-being of our aging population," said Randy Oostra, ProMedica president and CEO. "The
lines are blurring between where health care begins and stops. This
acquisition provides us the platform to think differently about
health and aging."
Individuals in their 70s and 80s are the fastest growing segment
of the U.S. population, yet the current senior care environment is
fragmented, costly and inefficient. Nearly eight million patients
are using post-acute care services, presenting a significant
opportunity to coordinate those services with healthcare systems to
improve quality and reduce the overall cost of care.
HCR ManorCare, based in Toledo,
Ohio, has more than 50,000 employees providing services in
450 assisted living facilities, skilled nursing and rehabilitation
centers, memory care communities, outpatient rehabilitation
clinics, and hospice and home health agencies operating under the
respected names of Heartland, ManorCare Health Services and
Arden Courts. Through this
transaction, ProMedica, which operates in six states, will expand
its footprint into 30 states, employing approximately 70,000 people
with projected annual revenues of $7B.
ProMedica and Welltower (NYSE: WELL), the world's premier health
care real estate investment trust (REIT) and leading owner of
senior living residences, entered into a strategic joint venture
agreement to facilitate the acquisition of HCR ManorCare and
Arden Courts real estate assets from
Quality Care Properties, Inc. (NYSE: QCP). The resulting
partnership will redefine the skilled nursing value paradigm and
connect the continuum of care for the patients in the communities
we serve.
"This is an exciting opportunity for Welltower and singularly
validates our strategy of partnering with major health systems to
drive health care delivery to lower cost settings while improving
health outcomes," commented Welltower CEO Tom DeRosa. "This acquisition will enable
ProMedica to expand their service offering beyond acute care
hospitals to include home health, post-acute care and residential
memory care. ProMedica's unique wellness focused strategy and
investment commitment to the HCR ManorCare assets will make them
more consequential sites of care and enhance their value. We are
very happy to be the real estate capital behind this transformative
transaction."
"We are thrilled to have a successful outcome for our
shareholders, HCR ManorCare employees and provide continuity and
stability for the more than 200,000 of HCR ManorCare patients and
residents," said QCP CEO Mark Ordan.
"ProMedica and Welltower together are redefining the settings where
health care will be delivered and ProMedica is committed to the
investment necessary to enhance the HCR ManorCare platform. QCP is
happy to have played a part in facilitating this exciting next
chapter for HCR ManorCare."
About ProMedica
ProMedica is a mission-based, not-for-profit integrated
healthcare organization headquartered in Toledo, Ohio. It serves communities in
Ohio, Michigan, Indiana, Kentucky, Pennsylvania and West Virginia. To date, the organization
offers acute and ambulatory care, an insurance company with a
dental plan, and post-acute and academic business lines. The
13-hospital system has more than 17,000 employees, 2,700 physicians
and advanced practice providers with privileges, and more than 900
healthcare providers employed by ProMedica Physicians. Driven by
its Mission to improve your health and well-being, ProMedica has
been nationally recognized for its advocacy programs and efforts to
address social determinants of health. For more information about
ProMedica, please visit www.promedica.org/aboutus.
About Welltower
Welltower Inc. (NYSE: WELL), an S&P 500
company headquartered in Toledo, Ohio, is driving the transformation of health
care infrastructure. The company invests with leading seniors
housing operators, post-acute providers and health systems to fund
the real estate infrastructure needed to scale innovative care
delivery models and improve people's wellness and overall health
care experience. Welltower™, a real estate
investment trust (REIT), owns interests in properties concentrated
in major, high-growth markets in the United
States, Canada and the United Kingdom, consisting of
seniors housing and post-acute communities and outpatient medical
properties. More information is available
at http://welltower.com/.
Forward-Looking Statements and Risk Factors
This press release contains "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995.
When Welltower and ProMedica use words such as "may," "will,"
"intend," "should," "believe," "expect," "anticipate," "project,"
"estimate," or similar expressions that do not relate solely to
historical matters, they are making forward-looking statements. In
particular, these forward-looking statements include, but are not
limited to, those relating to Welltower and ProMedica's ability to
close the HCR ManorCare joint venture transaction on currently
anticipated terms, or within currently anticipated timeframes; the
expected performance of Welltower, ProMedica, and HCR ManorCare's
operators/tenants and properties; Welltower, ProMedica, and HCR
ManorCare's expected occupancy rates; and Welltower and ProMedica's
ability to access capital markets or other sources of funds.
Forward-looking statements are not guarantees of future performance
and involve risks and uncertainties that may cause Welltower and
ProMedica's actual results to differ materially from their
expectations discussed in the forward-looking statements. This may
be a result of various factors, including, but not limited to: the
satisfaction of closing conditions to the HCR ManorCare joint
venture transaction, including the receipt of regulatory approvals
and lender or third-party consents; the respective parties'
performance of their obligations under the HCR ManorCare joint
venture transaction agreements; the receipt of applicable
healthcare licenses and governmental approvals; unanticipated
difficulties and/or expenditures relating to the HCR ManorCare
joint venture transaction; the status of the economy; the status of
capital markets, including availability and cost of capital;
changes in financing terms; competition within the health care and
seniors housing industries; negative developments in the operating
results or financial condition of operators/tenants, including, but
not limited to, their ability to pay rent and repay loans;
operator/tenant or joint venture partner bankruptcies or
insolvencies; the cooperation of joint venture partners; and other
risks described in Welltower's reports filed from time to time with
the Securities and Exchange Commission. Finally, Welltower and
ProMedica undertake no obligation to update or revise publicly any
forward-looking statements, whether because of new information,
future events, or otherwise, or to update the reasons why actual
results could differ from those projected in any forward-looking
statements.
CONTACTS:
Mary Cunney
Ogilvy
212-884-4038
mary.cunney@ogilvy.com
Tim McHugh
Welltower
419-247-2800
tmchugh@welltower.com
Tedra White
ProMedica
419-262-0371
tedra.white@promedica.org
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SOURCE ProMedica; Welltower