HCR ManorCare

ManorCare, Inc., through its operating group HCR ManorCare, is a major provider in the United States of both short-term post-acute and long-term care. As of 2007, it had more than 500 skilled nursing and rehabilitation centers, assisted living facilities, outpatient rehabilitation clinics, and hospice and home health care offices, and over 60,000 employees.[1] The company is headquartered in Toledo, Ohio. In July 2007, it agreed to a $4.9 billion buyout offer from the private equity firm Carlyle Group. In 2018, HCR ManorCare filed for bankruptcy protection and agreed to be taken over by its landlord, Quality Care Properties. In July 2018, Quality Care Properties was acquired by a joint venture between Welltower and ProMedica.

HCR ManorCare
TypeNon-Profit
IndustryHealthcare
Founded1959 
HeadquartersToledo, Ohio, USA
OwnerProMedica Health Systems
Websitehcr-manorcare.com

Operations

The company operates primarily under the Heartland, ManorCare Health Services and Arden Courts names. In 2006, it earned $167 million on sales of $3.6 billion.[2]

As of the end of 2015, the company operated 243 skilled nursing facilities, 55 assisted living facilities, 109 hospice and home health offices, and 92 outpatient therapy clinics, located in 28 states, primarily in Florida, Illinois, Michigan, Ohio, and Pennsylvania. About 73% of its revenue comes from higher-paying Medicare and private-pay patients.[3]

As of the end of 2015, the company had approximately 57,500 employees, including part-time employees. About 7,000 employees were salaried; the rest were hourly employees. About 1,400 employees were members of labor unions.[4]

History

ManorCare began in 1959, when Stewart W. Bainum, Sr., a former plumber, opened a nursing home in Wheaton, Maryland. The company went public in 1969.

In 1980, the company merged with the hotel company Quality International, later renamed Choice Hotels, which was also run by Bainum. In 1982, the company acquired nursing home operator Cenco, for $209 million; total facilities were 105, in 19 states. In 1987, Stewart Bainum, Jr., became chairman and CEO, succeeding his father.[5]

In 1992, the company spun off Vitalink Pharmacy Services into a public company with a value of $236 million. In 1996, the company spun off Choice Hotels, refocusing its business on health care.

In 1998, Ohio-based Health Care and Retirement Corporation merged with ManorCare to become HCR ManorCare. The company headquarters was consolidated in Toledo.

In March 2000, Stewart W. Bainum, Jr., and a management group made separate offers to buy the company, which the company's board rejected. His term as chairman of the board ended in 2001, and in 2002 he left the Board.

2007 buyout offer

In July 2007, the company agreed to a $4.9 billion buyout offer from the private equity firm Carlyle Group; it will no longer be a publicly traded corporation. Analysts said that Carlyle was interested in the company because it owns, rather than leases, nearly all its own facilities and boasts arguably the best real-estate portfolio in the business, with generally well-maintained, newer facilities in good locations, and little mortgage debt. By borrowing against the property to finance the buyout, ManorCare and Carlyle can carry out the deal on favorable terms.[3] The buyout was completed at $67 per share on December 21, 2007.

In 2010 HCR ManorCare entered into a sale-leaseback transaction whereby the company sold off 338 post-acute, skilled nursing and assisted living facilities for US$6.1 billion. These are now owned by HCP, a REIT based within the state of California. These assets are still operated by HCR ManorCare.[6]

References
  1. "Corporate profile" Archived 2007-06-29 at the Wayback Machine, accessed July 10, 2007
  2. "Carlyle to buy ManorCare for $6.3 billion: Latest health care provider to be acquired by private equity buyer"], Bloomburg, May 16, 2008
  3. Theo Francis, "Real Estate Is Driver Of Manor Care Buyout Deal", Wall Street Journal, July 3, 2007
  4. "Annual report, 2006 (pdf)" (PDF). Archived from the original (PDF) on 2007-09-28. Retrieved 2007-07-10.
  5. "Manor Care Through the Years", Washington Post, July 9, 2007
  6. HCP to Acquire Assets of HCR Manorcare in $6.1 Billion Sale-Leaseback
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