Welltower Inc. and ProMedica announced the successful close of their joint venture acquisition of Quality Care Properties, Inc. and its principal tenants, HCR ManorCare and Arden Courts, the nation’s second largest provider of post-acute services and long-term care.
“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.”
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.
“At the heart of this transaction is the need to shift care delivery into new, more cost-effective settings as well as to expand our unique wellness-focused strategy as we scale nationally,” said Randy Oostra, ProMedica president and CEO. “This is our opportunity to redefine the settings of effective care delivery outside of the hospital walls for aging seniors and enhance our service offering to span the entire continuum of care, including home health, post-acute care and residential memory care.”
A presentation with additional background on the strategic opportunity this venture presents will be accessible on the investor section of Welltower’s website.
