TOLEDO, OH (WTOL) - ProMedica does not seem to be slowing down its buying spree.
ProMedica, along with Welltower Inc, a Toledo based real estate trust, is acquiring HCR ManorCare located in downtown Toledo, right across the street from ProMedica's headquarters. According to Reuters, ProMedica is teaming up with Welltower which is a Toledo based real estate trust.
HCR ManorCare is the second-largest nursing home chain in the country and with this merge they will still retain their employees.
The way the two companies are breaking up the acquisition is as follows: ProMedica will acquire 100 percent of HCR ManorCare and they will covert it to a non-profit. Welltower, one of the largest owners of senior housing properties in the U.S., will acquire 80-percent of the real estate, and ProMedica will acquire the rest of the 20-percent.
"We want to take down the wall between tradition hospital and post-acute care services in an effort to enhance the health and well-being of our aging population," said ProMedica president and CEO Randy Oostra. "The lines are blurring between where health care begins and stops. This acquisition provides us the platform to think differently about health and aging."
Individuals in their 70's and 80's are the fastest growing segment of the U.S. population, yet current senior care is costly and inefficient. ProMedica is looking to change that.
"We're really positive that we can retain a local Toledo company here. When you start looking at all of the demographics, this makes all the sense in the world, when you look at the aging in America or folks turning 85 which is huge over the next few years, the prediction surrounding dementia and Alzheimer care, home care.
The acquisition of HCR in this joint venture of ProMedica and Welltower will propel ProMedica to be in the top 15 largest health systems in the United States.
One of the staple deli's located in the HCR ManorCare, Focaccai's, that just signed a 20-year lease in the building, is happy to know, ProMedica and Welltower are the companies taking over, as it's security for him and his business he's had in the building for over 17 years.
"From then to today it's been night and day it's just great and there were a lot of naysayers when I moved downtown opening Eddie B's focaccia's and the Blarney and every time I open up anything new everybody is like is like everyone is moving to the suburbs and look now everyone is moving downtown," said Ed Beczynski, the owner of Focaccia's, the Blarney and Eddie B's, which are all located downtown.
ProMedica plans to invest as much as $400 million of growth and upgrade capital over the next five years.