- Unique large-scale partnership covers full spectrum of health care with goal of redefining healthy aging for the future
- Partnership created ~$7B health network with 70,000 employees in 30 states
- Transaction boosted ProMedica into the top 15 largest U.S. Health Systems
- ProMedica plans to invest as much as $400M of growth and upgrade capital over the next five years
Newswise — TOLEDO, Ohio, July 26, 2018 ¬ ProMedica, a mission-based, not-for-profit healthcare system focused on improving health and well-being, today announced the finalization of the transaction that adds HCR ManorCare operations to the ProMedica organization. With HCR ManorCare being the nation's second largest post-acute and long-term care provider, this partnership has enabled ProMedica to significantly scale its system to become the 15th largest in the nation. The combined organization provides an unmatched breadth of services and capabilities, including: a hospital system, a physician group, telehealth, several health plans, an academic affiliation, skilled nursing, assisted living, rehab, home health and hospice.
Randy Oostra, president and CEO of ProMedica, is the CEO of the combined organization. Steve Cavanaugh, former CEO of HCR ManorCare, now serves as the president of the HCR ManorCare division at ProMedica.
“This partnership is groundbreaking. Together, we will redefine health care and its role in healthy aging,” said Randy Oostra, president and CEO at ProMedica. “We are focused on tearing down the walls between care delivery channels to provide simpler navigation across the care continuum, along with greater value. Further, we see a tremendous opportunity to engage ProMedica’s nationally-recognized, social determinants of health work to benefit seniors across the communities we serve.”
“This relationship is exciting because of all of the opportunities it creates. No other organization in the country offers the breadth of services and capabilities of our combined organizations,” said Steve Cavanaugh, president, HCR ManorCare division at ProMedica. “We are looking forward to leveraging our resources to create a new way of delivering better care and improving outcomes.”
While hospitals will always play a significant role in healthcare delivery, the “baby boomers” are aging and their expectations for safe and value-based health care are different than any other prior generation. Forecasts indicate that the 85-and-older population in the United States is expected to double over the next 20 years. This growth will exacerbate the inefficiencies of the current fragmented and costly health systems. This partnership is uniquely positioned to address these challenges by seamlessly coordinating care across multiple health delivery channels to improve quality and reduce the overall cost of care.
Toledo, Ohio-based Welltower Inc. (NYSE:WELL), the leading global real estate capital provider to the healthcare industry, played a major role in facilitating this transaction through its innovative approach to using healthcare infrastructure to optimize healthcare delivery to lower cost sites of care while driving improved outcomes.
“Together with ProMedica, one of the largest and most innovative health systems in the U.S., this acquisition of HCR ManorCare provides us the platform to think differently about where healthcare services are delivered, particularly with respect to the aging of the population,” said Tom DeRosa, Chief Executive Officer of Welltower. “The close of this transformative joint venture further validates our health system strategy through which we leverage high-quality real estate to optimize care delivery at lower cost sites of care while remaining focused on improved outcomes.”
For more information about ProMedica, visit www.promedica.org.
To learn more, visit www.promedica.org/boldvision
ProMedica is a mission-based, not-for-profit integrated healthcare organization headquartered in Toledo, Ohio. It serves communities in 30 states. The organization offers acute and ambulatory care, an insurance company with a dental plan, and post-acute and academic business lines. The organization has more than 70,000 employees,13 hospitals, 2,700 physicians and advanced practice providers with privileges, 900+ healthcare providers employed by ProMedica Physicians, a health plan, and 450 assisted living facilities, skilled nursing and rehabilitation centers, memory care communities, outpatient rehabilitation clinics, and hospice and home health care agencies. 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.
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