The companies announced that ProMedica is ditching its skilled nursing joint venture with Welltower to address the nonprofit health organization’s senior care division Operating loss issues Monday.
According to a press release from ProMedica, the real estate and management of the skilled nursing facility, a joint venture between ProMedica and Welltower, will begin transferring on December 19. ProMedica holds a 15 percent interest in the joint venture.
147 skilled nursing facilities will be sold to Integra Health, which will have a 15 percent ownership in a joint venture with Welltower. According to a Welltower press release, the deal is expected to close by the end of this year.
In 2018, ProMedica acquired bankrupt post-acute care provider HCR ManorCare for $1.4 billion. Two years later, ProMedica’s acquisitions in the senior living market look to be paying off. HCR ManorCare posted an operating margin of 7.7% in the first half of 2020. But in March, ProMedica’s senior care unit recorded an operating loss of $275 million in 2021 due to lower patient volume and labor shortages.
“By participating in this transaction, we will be able to increase our focus and resources to other areas of our health system as we continue to provide high-quality, compassionate care and invest in to our communities and dedicated caregivers,” Arturo Polizzi ProMedica President and CEO said in the release. the company said.
This announcement comes a week after the retirement of ProMedica CEO Randy Oostra.