“Revenue $5 B As of December 2013
At a Glance
- Industry: Health Care Equipment & Svcs
- Founded: 1929
- Country: United States
- CEO: Paul Ormond
- CFO: Steven Cavanaugh
- Website: www.hcr-manorcare.com
- Employees: 55,000 e
- Fiscal Year End: Dec 31, 2012
- Sales: $5 B e
- Headquarters: Toledo, OH
#74 America’s Largest Private Companies
Manor Care operates more than 400 skilled nursing and rehabilitation centers, assisted living centers, hospice and home care agencies, and outpatient rehabilitation clinics. The company went private in a $6.3 billion buyout by private equity firm Carlyle in December 2007.”
“HCR ManorCare History
FOLLOWING THE NEED.
HCR ManorCare has its roots in Toledo, Ohio-based Owens-Illinois, Inc. (O-I), the world’s largest glass container manufacturer. In 1929, O-I entered the health care field when Owens Bottle Company merged with Illinois Glass Company, a manufacturer of glass products for the drug and medical fields, to form Owens-Illinois Glass Company. In 1982, health care was viewed as a rapidly growing industry that could be expected to improve profits. As a result, O-I created a health care group, which included pharmaceutical packaging operations that made scientific glassware. That same year, an investment started O-I on the road to nursing home ownership.
O-I begins a deeper diversification into health care by making an equity investment in Health Group Inc. (HGI) of Nashville, Tennessee, a hospital management group that owned specialty hospitals and several nursing homes.
O-I acquires Health Care and Retirement Corporation of America (HCRA), headquartered in Lima, Ohio. Starting as a lumber company in 1944, HCRA expanded into constructing nursing homes for third parties and in 1974 began management of its first facility. In the late 70s and early 80s, HCRA continued construction of new homes and by the time it is acquired by O-I owned 46 facilities with over 5,000 beds.
O-I acquires the nursing homes of Health Group Care Centers, a division of HGI, in exchange for its equity position in HGI. The acquisition includes 26 facilities in 10 states.
Headquarters of O-I’s health care business is moved from Lima to Toledo.
O-I acquires Care Corporation, headquartered in Grand Rapids, Michigan. This company adds 41 nursing homes, with 5,300 beds, in six states
By 1990, O-I is a major skilled nursing provider with 135 facilities and more than 17,500 beds
Ancillary Services Inc., a supplier of Medicare Part B products and supplies, is formed.
The following Heartland Health Care skilled nursing centers are opened: Orange Park, Miami Lakes and Fort Myers.
Health Care and Retirement Corporation (HCR) is created to purchase O-I’s health care businesses, and HCR goes public on the New York Stock Exchange.
The following Heartland Health Care skilled nursing centers are opened: Prosperity Oaks and Boynton Beach.
HCR forms Heartland Rehabilitation Services and acquires Sylvania Therapy Services, a Toledo-based provider of rehabilitation services in Michigan and Ohio. Over the subsequent years, several acquisitions expand outpatient rehabilitation operations into the states of New Jersey, Virginia, Kentucky and Florida.
Eleven skilled nursing centers in Connecticut and Massachusetts purchased as part of the Care Corporation transaction are sold.
The following Heartland Health Care skilled nursing center is opened: Sarasota.
Heartland Healthcare Services, a 50/50 partnership with Omnicare Inc., is formed to supply and distribute pharmaceutical products.
The following Heartland Health Care skilled nursing center is opened: Boca Raton.
HCR forms a subsidiary to enter the home health care and hospice field. Business launches with the acquisition of Allen Home Care, a Michigan-based home health care provider. Several acquisitions and a number of startup operations spur growth, and today there are home health care and hospice agencies in 25 states.
The following skilled nursing center is opened: Danto Health Care Center.
The Balanced Budget Act of 1997 (BBA) is passed. BBA precipitated a watershed structural change in the skilled nursing industry by introducing a Medicare prospective payment system (PPS) that replaced a cost-based system. PPS commenced in July 1998. Providers were allowed to phase in PPS gradually, and by the time it was fully implemented, five of HCR ManorCare’s six largest competitors and numerous other providers had filed for bankruptcy protection. During this time, HCR remained an investment grade company. The industry’s structural changes launch the company’s focus on caring for high-acuity patients.
HCR acquires Milestone, a contractor with hospitals for managing their rehabilitation units. Also includes a staffing business.
The following Heartland Health Care skilled nursing center is opened: Ann Arbor.
HCR acquires Manor Care, Inc., a large nursing home company based in Gaithersburg, Maryland, which adds 171 skilled nursing centers, 42 assisted living facilities and an acute care hospital. Acquisition creates the largest skilled nursing provider in the industry, with annual revenues exceeding $2 billion.
Manor Care began its health care history in 1960 with the construction of what today is ManorCare Health Services – Wheaton. Manor Care grew from two roots – health care and lodging/hospitality operations, including Quality Inns. In 1997, Manor Care completed the spin-off of its lodging business and began a total focus on health care. In 1995, Manor Care acquired a 41 percent ownership in In Home Health, a provider of comprehensive home health care services. Manor Care’s approximately 50 percent interest in Vitalink Pharmacy Services was sold in 1998.
Company is renamed HCR Manor Care, Inc., with Manor Care’s headquarters operations consolidated into HCR’s Toledo headquarters. Construction and development office remains in Rockville, Maryland.
Manor Care introduced the Arden Courts brand in 1994 by opening the first of the freestanding care centers in Potomac, Maryland. The centers were developed to meet the special needs of individuals in the early and middle stages of Alzheimer’s disease. The following assisted living facilities are opened in 1998: Arden Courts of Hamden, Arden Courts of Northbrook, Arden Courts of Largo, Arden Courts of Palm Harbor, Arden Courts of Pikesville, Arden Courts of Sarasota, Arden Courts of Seminole, Arden Courts of West Orange, Arden Courts of Wayne, Arden Courts of Wilmington, Arden Courts of Monroeville, Arden Courts of Delray Beach, Linden Village and Springhouse of Pikesville.
The following skilled nursing centers are opened: Heartland Health Care Center -Pewaukee and ManorCare Health Services of Delray.
HCR Manor Care moves its headquarters from One SeaGate to 333 N. Summit St. in downtown Toledo.
HCR ManorCare forms a strategic alliance with Alterra Healthcare Corporation. Company sells 29 assisted living residences to Alterra.
The following skilled nursing centers are opened: Whitehall Borough, ManorCare Health Services of Northbrook and ManorCare Health Services of Fort Myers.
The following assisted living facilities are opened: Arden Courts of Lely Palms, Arden Courts of Bath, Arden Courts of Bingham Farms, Arden Courts of Chagrin Falls, Arden Courts of Fort Myers, Arden Courts of Jefferson Hills, Arden Courts of Livonia, Arden Courts of Parma, Arden Courts of Richardson, Arden Courts of Tampa, Arden Courts of Winter Springs, Arden Courts of Palos Heights and Arden Courts of Arlington.
HCR Manor Care acquires the remaining 59 percent equity interest in In Home Health, Inc.
The following assisted living facilities are opened: Arden Courts of Anderson, Arden Courts of Austin, Arden Courts of Avon, Arden Courts of Geneva, Arden Courts of Kenwood, Arden Courts of Louisville, Arden Courts of San Antonio, Arden Courts of Susquehanna, Arden Courts of Towson, Arden Courts of Whippany and Arden Courts of Warminster.
Company divests two skilled nursing centers — one in Oklahoma and one in Florida. This begins a rationalization over the next decade of skilled nursing centers that no longer fit the company’s strategic direction, which results in divesting 35 skilled nursing centers.
The company concentrates its focus more strongly on skilled nursing and dementia assisted living and, in so doing, ends its assisted living development joint venture formed in 1999 with Alterra.
The following skilled nursing center is opened: Old Orchard Health Care Center.
The following assisted living facility is opened: Arden Courts of Glen Ellyn.
Company divests two skilled nursing centers—one in Wisconsin and one in Ohio.
HCR Manor Care sells its only acute care hospital.
The following assisted living facilities are opened: Arden Courts of Kensington, Arden Courts of Annandale and Arden Courts of Hazel Crest.
Company divests a skilled nursing center in Wisconsin.
HCR Manor Care achieves annual revenues of $3 billion.
Company divests five skilled nursing centers—three in Texas, one in Indiana and one in Florida.
The following skilled nursing center is opened: Heartland of Marion.
The company divests 16 skilled nursing centers—seven in Florida, four in Texas, two in Oklahoma, one in Pennsylvania, one in Tennessee and one in Wisconsin.
HCR ManorCare opens its first long-term acute care hospital (LTACH) in Norman, Oklahoma.
The following skilled nursing centers are opened: ManorCare Health Services of Woodbridge Valley and Heartland Health Care Center – Canton.
Company divests four skilled nursing centers—three in New Mexico and one in Illinois.
Company sells its medical transcription business, Heartland Information Services. During this time period, other non-core businesses are sold including the company’s vision business and urgent care centers.
The following skilled nursing centers are opened: Heartland Health Care Center -Oakland, ManorCare Health Services of Parma, ManorCare Health Services of West Des Moines and ManorCare Health Services of Voorhees.
The company is taken private with The Carlyle Group as the majority owner. The name of the company changes to HCR ManorCare.
Company achieves $4 billion in annual revenues.
The following skilled nursing center is opened: ManorCare Health Services of Utica Ridge.
Company divests three skilled nursing centers—two in California and one in Indiana.
Company divests two skilled nursing centers—one in Illinois and one in Ohio.
The following skilled nursing centers are opened: ManorCare Health Services of Wingfield Hills and ManorCare Health Services of Washington Township.
In a sale/leaseback transaction, company sells 338 post-acute, skilled nursing and assisted living facilities to HCP, a real estate investment trust (REIT) headquartered in California, for $6.1 billion. HCR ManorCare continues to operate and manage all of the assets sold.
The following skilled nursing centers are opened: ManorCare Health Services of Salmon Creek and ManorCare Health Services of Lacey.”
*Information from Forbes.com and Hcr-manorcare.com
**Video published on YouTube by “HCR ManorCare“