TOLEDO, Ohio, March 2, 2021 /PRNewswire/ -- ProMedica and Welltower (NYSE:WELL) today announced two transactions to strengthen and expand their strong existing partnership while maintaining an unwavering focus on patient care and clinical outcomes. The transactions serve to enhance the quality of the Welltower/ProMedica joint venture ("JV") portfolio and position it for continued growth going forward.
First, the JV will divest a 25 property portfolio of non-strategic skilled nursing facilities for $265 million. The properties, which were acquired through the formation of the Welltower/ProMedica partnership in 2018, are in eight states and have an average age of 41 years.
Second, nine PowerBack rehabilitation facilities, operated by Genesis HealthCare (NYSE: GEN), will be contributed into Welltower's JV with ProMedica and master leased to ProMedica. The properties are mostly purpose-built state-of-the-art rehabilitation facilities, with numerous amenities. Reimbursements are received primarily from Medicare and commercial insurance providers. The PowerBack facilities are intended to enhance ProMedica's post-acute capabilities by enabling the health system to further strengthen its ability to work with referral sources and provide the care needed by patients and their families in these markets. The facilities will be rebranded as ProMedica Senior Care, as part of the successful launch of that brand in October 2020.
"ProMedica has the unique opportunity to improve its senior care portfolio through these two important transactions," said Randy Oostra, ProMedica president and CEO. "The transactions are a testament to the strong partnership we have formed with Welltower and our shared focus on innovation and quality patient care. Moreover, the transactions announced today with Welltower follow other recently announced partnerships that collectively allow ProMedica to strengthen its position in strategic markets. Most importantly, we will be able to expand the high-quality care our communities have come to expect from us. Additionally, we look forward to welcoming the highly-capable and talented staff that will be joining the ProMedica family."
"We are delighted to expand our partnership with ProMedica and enhance the quality and growth profile of our joint venture through these transactions," said Shankh Mitra, Welltower CEO. "We shared lofty aspirations with ProMedica at the outset of our relationship and are pleased to announce that our expectations have been exceeded. Our strategic partnership fueled ProMedica's acquisition of HCR ManorCare, which allowed ProMedica to become one of the largest not-for-profit health systems in the country and achieve nearly $100 million of integration-related synergies since that acquisition closed in 2018. The changing health care environment requires innovative partnerships, such as the one established between ProMedica and Welltower. We are looking forward to the opportunities these transactions will generate as we continue to demonstrate how we're challenging the traditional care models."
Forward Looking Statement
This press release may contain forward-looking statements. When Welltower uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to, those factors discussed in Welltower's reports filed from time to time with the Securities and Exchange Commission. Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.
ProMedica is a mission-based, not-for-profit health and well-being organization headquartered in Toledo, Ohio. It serves communities in 28 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 49,000 employees, 12 hospitals, 2,500+ physicians and advanced practice providers with privileges, 1,000+ healthcare providers employed by ProMedica Physicians, a health plan, and 335+ assisted living facilities, skilled nursing 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.
Welltower Inc. (NYSE: WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower™, a real estate investment trust (REIT), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. More information is available at http://welltower.com/.
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