TOLEDO, Ohio — ProMedica is unloading another asset to raise money amidst a turbulent time for the Toledo-based healthcare system.
Atlanta-based Gentiva is purchasing ProMedica's hospice and home healthcare business, both companies announced Monday. According to Bloomberg, Gentiva is paying $710 million for about 120 ProMedica locations that care for about 9,000 patients.
ProMedica spokeswoman Tausha Moore said the deal "excludes a small number of agencies, including those located in ProMedica’s Ohio-Michigan hospital footprint." She declined to comment further on the transaction.
"As part of the Gentiva family, the Heartland agencies will be well-positioned to continue providing compassionate care that prioritizes patient comfort, dignity, and well-being throughout the care continuum," ProMedica President and CEO Arturo Polizzi said in the release. "For ProMedica, this transaction is an important step toward simplifying our organizational structure and ensuring our long-term financial strength. 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."
ProMedica's hospice and home healthcare unit, known as Heartland, has operated within the senior care division. In December, ProMedica divested from 147 skilled nursing homes and laid off more than 250 employees.
Gentiva has more than 30,000 associates and caregivers caring for about 24,000 patients across 36 states. The company said its growth strategy with Heartland will be predicated on hiring and investing in more caregivers and ensuring commitment to high-quality care.
"This transaction is an exciting development for patients and their families that will enable us to extend our best-in-class caregiver recruitment and retention programs and provide high-quality care to more patients in more areas throughout the country," said David Causby, president and chief executive officer of Gentiva. "Gentiva consistently achieves industry-leading quality of care and patient family satisfaction scores by investing in our people and caregiving capabilities. Heartland is a high-quality hospice and home care provider that shares our values on compliance and putting patients first, and my colleagues and I look forward to growing our number of caregivers so we can expand access to the highest-quality care for more seniors."
ProMedica has faced significant financial difficulty in the last couple years. The company lost hundreds of millions of dollars through the first three quarters of 2022, including steep losses in the senior care division.
Also in 2022, multiple top executives were fired, including Chief Financial Officer Steve Kavanaugh. Randy Oostra went from president and CEO in May to solely CEO, then retired in October.
ProMedica's debt and credit ratings were downgraded last year by the major bond rating agencies, such as Moody's and Fitch Ratings.
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