Toledo, OH-based ProMedica last week finalized the long-awaited $710 million sale of its national home health and hospice division to Atlanta-based Gentiva Health Services. The deal had been delayed several months as the companies awaited final state and federal regulatory approvals.
ProMedica confirmed the transaction.
“The completion of this transaction is a major step forward that will enable ProMedica to focus more time, energy and resources on its core health system operations,” ProMedica Associate Vice President of Strategic Communications Tausha Moore told the McKnight’s Business Daily. “The proceeds from this transaction will enable ProMedica to pay off some debt and help support the organization’s long-term financial stability goals.”
Most of ProMedica’s hospice locations will rebrand to the Heartland Hospice brand by the end of 2023, and home health locations will rebrand to Heartland Home Health in early 2024. ProMedica’s palliative care business will operate under Gentiva’s Empatia Palliative Care brand.
As McKnight’s previously reported, ProMedica has been streamlining its senior living and care properties. The company retains just two skilled nursing facilities among its varied holdings. One that it wholly owns is in Florida and another it jointly operates is in Ohio. Combined, the two locations have 213 beds.
ProMedica previously told McKnight’s that it “continues to take strategic action to strengthen our financial position and build greater stability and sustainability throughout the organization.”
Gentiva CEO David Causby, in a statement, called the company’s purchase of the ProMedica home health and hospice business “a significant milestone” that “will benefit the patients and families in our care.”
He added the company is “enthusiastic about welcoming the talented caregivers at ProMedica into the Gentiva family.”
“As a combined company, we plan to increase the number of caregivers and provide greater access to our care offering to more patients in the communities we serve,” Causby said.
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