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ProMedica Health System to Acquire HCR ManorCare Redefining Care for Seniors

TOLEDO, Ohio–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.”