TOLEDO,
Ohio, Nov. 7, 2022 /PRNewswire/ -- ProMedica
announced today that it has entered into definitive agreements
under which ProMedica will transfer, as of December 19, 2022, the real estate and management
of all of its skilled nursing facilities currently part of a joint
venture and master lease, respectively, between ProMedica and
Welltower. Under the terms of the agreement, a new Welltower
venture will own the real estate interests for the skilled nursing
facilities. Operations for the skilled nursing facilities will also
transition to new operators.
This transaction resolves ProMedica's ongoing operating losses
within its Senior Care Division. Importantly, this action
represents a cornerstone element of ProMedica's ongoing
comprehensive financial performance improvement plan.
"By engaging in this transaction, we will be able to
increase focus and resources on the other areas of our health
system as we continue to provide high-quality, compassionate care
and invest in our communities and dedicated caregivers," said
Arturo Polizzi, president and CEO of
ProMedica. Mr. Polizzi added that "This was a complex transaction,
and I would like to personally thank Welltower's executive team –
particularly Shankh Mitra, CEO – for their efforts."
The definitive agreements do not include ProMedica's
non-Welltower leased senior care centers located in Adrian and Monroe,
Michigan, the skilled nursing and memory care facilities
located on the ProMedica Flower Hospital campus in Sylvania, Ohio, and ProMedica's Home Health
and Hospice agencies. ProMedica will continue operating those
centers and agencies, as well as its 58 Arden Courts memory care
communities within its real estate joint venture with
Welltower.
Advisors
Jones Day and Baker Hostetler are
serving as legal counsel to ProMedica. Ankura and Houlihan Lokey are serving as ProMedica's
financial advisor and investment banker, respectively.
About ProMedica
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 12 hospitals, 2,500+
physicians and advanced practice providers with privileges, 1,000+
health care providers employed by ProMedica Physicians, a health
plan, and assisted living memory care facilities, skilled nursing
centers, outpatient rehabilitation clinics, and hospice, home
health and palliative 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 promedica.org/aboutus.
About Welltower
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 www.welltower.com.
Forward-Looking
Statement
By accepting this press release, recipients acknowledge that
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disclaimer.
This press release is being provided for informational
purposes only and is intended solely to facilitate a discussion
with the recipient. This press release contains forward-looking
statements subject to risks, uncertainties and other factors. All
statements other than statements of historical fact or relating to
present facts or current conditions included in this press release
are forward-looking statements. Forward-looking statements give
ProMedica Health System's current expectations and projections
relating to ProMedica Health System ("ProMedica"or the
"Organization",) and its affiliates' financial condition,
results of operations, plans, objectives, future performance and
business. You can identify forward-looking statements by the
fact that they do not relate strictly to historical or current
facts. These statements may include words such as
"anticipate," "estimate," "expect," "project," "seek," "plan,"
"intend," "believe," "contemplate," "assume," "will," "may,"
"could," "would," "continue," "likely," "should," and other words
and terms of similar meaning in connection with any discussion of
the timing or nature of future operating or financial performance
or other events but not all forward-looking statements contain
these identifying words. Risks, uncertainties and other
factors may cause future results to differ materially from these
forward-looking statements and potentially adversely from the
historical results contained herein.
Any references to any future or proposed transaction are for
illustrative purposes only, and the terms of any such transaction
should it occur may be materially different than the terms in this
press release.
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