Toledo, OH-based ProMedica entered a definitive agreement this week to sell the company’s Heartland brand home health and hospice care business to Atlanta-based Gentiva for $710 million.
Gentiva currently provides hospice, palliative and personal care across 36 states.
“For ProMedica, this transaction is an important step toward simplifying our organizational structure and ensuring our long-term financial strength,” ProMedicare President and CEO Arturo Polizzi said in a statement. “We are pleased to be able to transition these agencies to a trusted industry leader, enabling ProMedica to commit more time, energy and resources to our core operations.”
The transaction follows the company’s near exit from the skilled nursing sector in 2022, which was meant to resolve ongoing financial losses within ProMedica’s senior care division. That division generated an operating loss of $93.1 million for the fourth quarter of 2021, compared with an operating loss of $43.5 million for the fourth quarter of 2020.
Toledo, OH-based real estate investment trust Welltower announced in November that it would move 147 skilled nursing facilities operated by ProMedica into a joint venture between Welltower and Integra Health. At the same time, ProMedica said it would transfer the real estate and management of all of the SNFs that are part of the joint venture and master lease, respectively, between ProMedica and Welltower by Dec. 19.
Genesis Healthcare subsequently added 34 former ProMedica nursing homes in Pennsylvania and four in Colorado to its offerings. The transition appeared to be a course correction for the Kennett Square, PA-based holding company as it rebounds from a shrinking presence that dates back to 2011.
ProMedica’s fourth quarter and year-end of 2022 earnings report is delayed for now, the Toledo Blade reported. According to the news outlet, the organization said the delay was “due to management’s ongoing accounting analysis and review of the system’s financial results for fiscal year 2022.”
