Attorney General Bonta Conditionally Approves Change in Control of Seven ProMedica Health System-Owned Skilled Nursing Facilities

OAKLAND – California Attorney General Rob Bonta today announced his conditional approval of the change in control of seven skilled nursing facilities (SNFs) from ProMedica Health System, an Ohio nonprofit corporation to Providence Group, Inc. (Providence Group), a California for-profit corporation. Under California law, any transaction involving the sale or transfer of control of a nonprofit healthcare facility must secure the approval of the Attorney General.

“Our top priority when reviewing healthcare transactions is the safety of the residents,” said Attorney General Bonta. “Due to the strong conditions we’ve imposed, individuals who live in these nursing facilities will continue receiving care in the place they call home. At the Department of Justice, we remain unwavering in our commitment to supporting a long-term care system that ensures high-quality, uninterrupted care for all residents.”

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The seven SNFs involved in this transaction are:

• ManorCare Health Services-Citrus Heights: comprising 162 beds;
• ManorCare Health Services-Sunnyvale: comprising 140 beds;
• ProMedica Skilled Nursing and Rehabilitation (Rossmoor): comprising 155 beds;
• ProMedica Skilled Nursing and Rehabilitation (Tice Valley): comprising 120 beds;
• ManorCare Health Services-Fountain Valley: comprising 151 beds;
• ManorCare Health Services-Hemet: comprising 178 beds; and
• ManorCare of Palm Desert: comprising 178 beds.

The buyer, Providence Group, will begin operating the facilities, assume control of their assets, obligations, and liabilities in exchange of a purchase or sale. Since 2012, the Providence Group has operated in California and is currently responsible for over 10,000 licensed beds and 20,000 employees in the state. An expert analysis, whose expertise includes assessing healthcare impact within skilled nursing facilities, found the transaction would ensure access and quality across all facilities.

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As part of his conditional approval, Attorney General Bonta has imposed specific conditions for the transfer which would require Providence Group to, among other things:

• Keep the same type and level of services being provided to residents.
• Maintain and continue to employ staff who are in good standing.
• Ensure continued participation in Medi-Cal and Medicare for eligible patients.
• Establish a Community Advisory Board at each facility for at least five years.
• Comply with nondiscrimination rules in the provision of services.

The California Department of Justice’s Healthcare Rights and Access Section (HRA) works proactively to increase and protect the affordability, accessibility, and quality of healthcare in California. HRA’s attorneys monitor and contribute to various areas of the Attorney General’s healthcare work, including nonprofit healthcare transactions; consumer rights; anticompetitive consolidation in the healthcare market; anticompetitive drug pricing; privacy issues; civil rights, such as health equity, reproductive rights and LGBTQ healthcare-related rights; and public health work on tobacco, e-cigarettes, and other products.

A copy of the conditional approval letter is available here.

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