HCR ManorCare, the second largest skilled nursing operator in the United States, has sold Heartland Rehabilitation and MileStone Staffing Services to Grant Avenue Capital, a healthcare-focused private equity firm in New York. Terms of the deal were not disclosed.
HCR went through a Chapter 11 bankruptcy restructuring in 2018 and was purchased for a total of $3.3 billion by a joint venture between Welltower (NYSE: WELL) and ProMedica, a not-for-profit health system. All the organizations are based in Toledo, Ohio. Welltower owns 80% of the HCR real estate and ProMedica owns 20%.
ProMedica owns 100% of HCR’s operating company, for which it paid $470 million in cash and used a $1.15 billion one-year bridge loan to finance its portion of the acquisition.
Heartland Rehabilitation is a national provider of outpatient physical rehabilitation with more than 60 facilities in seven states. It offers services such as physical, occupational and speech therapies. MileStone Staffing provides per-diem travel and contract clinical staffing to providers.
Grant Avenue Capital has combined the two companies to form H2 Health.