ProMedica saw improvement in its HCR ManorCare nursing home business line during the first quarter of 2020 because of the bail out money. The Toledo, Ohio-based ProMedica pulled in $17.1 million in income compared to $7.7 million in the first three months of 2019 associated with its ManorCare business to start 2020. ProMedica so far has landed a total of $158 million in federal support under the CARES Act stimulus package, $89 million of which went to its senior care division.
ProMedica and fellow Toledo-based company Welltower (NYSE: WELL) acquired ManorCare in a complex joint venture back in 2018, with the health system buying the operations outright and entering into a 20-80 partnership with the REIT to purchase the real estate.
Combined with ProMedica’s home health and hospice business lines, the ManorCare assets helped the system log income of $27.5 million in its senior care division, up $9.5 million from the year-ago quarter — and representing a plurality of the system’s overall revenue.
The non-profit also received extensions on some of its debt obligations, deferred payroll taxes, froze non-essential hiring and spending, and temporarily furloughed 900 employees — mostly from acute-care settings that were temporarily shut down amid bans on the provision of non-essential care.
“I will tell you that ProMedica is in fine shape,” Welltower chief operating officer and chief investment officer Shankh Mitra said, emphasizing that the business line was “very, very low” on his list of COVID-19 concerns.