ProMedica is leaving a skilled nursing joint venture with Welltower to address operational losses in the nonprofit’s senior care division, the companies announced Monday.
The property and management of skilled nursing facilities in the joint venture of ProMedica and Welltower will transfer starting December 19, according to a ProMedica news release. ProMedica holds a 15% interest in the joint venture.
147 skilled nursing facilities will be sold to Integra Health, which will hold 15% ownership in the joint venture with Welltower. The deal is expected to close by the end of the year, according to a Welltower news release.
In 2018, ProMedica acquired the bankrupt post-acute care provider HCR ManorCare for $1.4 billion. Two years later, buying ProMedica in the luxury living market seems like it has paid off. HCR ManorCare posted a 7.7% operating margin for the first half of 2020. But this March, ProMedica’s senior care division recorded an operating loss of $275 million in 2021, with the reason for the decrease in the number of patients and the lack of labor.
“By entering into this transaction, we will be able to increase our focus and resources on other areas of our health system as we continue to deliver quality, compassionate care. and invest in our community and dedicated caregivers,” said Arturo Polizzi, president and CEO of ProMedica, in a press release.
ProMedica will continue to operate 58 private paid assisted living and memory care communities under a joint venture with Welltower, the real estate company said.
The announcement comes a week after ProMedica CEO Randy Oostra retired.
