Welltower partners with ProMedica to acquire Quality Care Properties
Healthcare real estate investor Welltower has announced it will acquire the outstanding shares of Quality Care Properties and form a joint venture with Toledo, Ohio-based health system ProMedica for the real estate holdings of QCP tenants HCR ManorCare and Arden Courts.
According to a press release, Welltower will pay $1.95 million in cash for QCP, which had earlier in April bought HCR ManorCare out of bankruptcy. HCR’s network contains more than 500 facilities ranging from skilled nursing to outpatient rehabilitation clinics to home health agencies, but it filed for bankruptcy in March as declining reimbursements from CMS left it struggling to pay rent to QCP.
QCP itself has a portfolio of 257 skilled nursing properties, 61 assisted living facilities, a surgical hospital and other medical office holdings spanning 29 states, according to Reuters.
Under the terms of the deal, the 80/20 joint venture between Welltower and ProMedica would give the Toledo health system control of the operations of HCR and Arden Courts. This will give ProMedica “immediate scale” in home health and post-acute care and help it grow beyond its six-state presence with 13 hospitals, six ambulatory surgery centers and 300 other facilities to 30 states.
“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,” Randy Oostra, ProMedica president and CEO, said in a statement. “The lines are blurring between where health care begins and stops. This acquisition provides us the platform to think differently about health and aging.”
The deal will also include a 15-year lease agreement and an agreement for ProMedica to invest more than $400 million in the facilities in the next five years.
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.