New ProMedica Deal to Blur Acute, Post-Acute Lines
Posted on Friday, April 27, 2018 7:55 PM
Late Wednesday, April 25, 2018, ProMedica announced it was acquiring the operations of HCR ManorCare, including its home health and hospice business, for $1.35 billion.
HCR ManorCare is the nation’s second-largest skilled nursing provider. The acquisition falls in line with a growing trend of payors and providers building out their care continuum, with one goal being to treat patients more frequently in lower-cost care settings like home health care.
“The venture greatly expands ProMedica’s footprint in the post-acute care space, doubling its revenue to more than $7 billion and adding about 100 home health care locations in 23 states.
The transaction will establish ProMedia as one of the 15 largest nonprofit health systems in the country and the largest health system operator of private-pay senior housing.
“Now that the whole health care delivery model is changing, they need to rationalize that and look for other ways to bring their health care delivery to lower cost, more modern settings—that is the entire theme of what you are seeing happening,” Tom DeRosa, CEO of Welltower, said during the company’s first quarter earnings call Thursday. “Whether it’s what Humana is doing, whether its Berkshire, Amazon and JPMorgan, health care delivery is being disrupted.””
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