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Come together Already in the process of consolidating, in September 1998 the long-term nursing care and assisted-living industry saw its biggest merger to date: the $2.45 billion stock swap between Health Care and Retirement Corporation (HCR) and Manor Care. The two firms, by themselves among the largest in the industry, combined to form a 55,000-employee leviathan valued at about $4 billion. HCR Manor Care, Inc. now operates nearly 600 care facilities, has a total revenue of $2.4 billion, and combined profits of more than $170 million. Pre-merger success The deal appears to be mutually beneficial, as both companies have enjoyed tremendous success over their histories. HCR, formerly a subsidiary of Owens-Illinois, gained its independence and went public in 1991. The Toledo, Ohio-based company grew rapidly in the subsequent years through acqusitions of Heartland Home Health Services and MileStone Healthcare. At the time of the merger with Manor Care, HCR owned over 300 nursing homes and over 100 specialty health care facilities, and had operations in 30 states. As an independent entity, Manor Care was also one of the nation's leading providers of long-term nursing and rehabilitation services. The company started in 1959 with a Maryland nursing home built by contractor Stewart Bainum, who built several more nursing homes before expanding into the hotel business. By 1968, when Bainum took his Manor Care public, the company had eight nursing homes and 12 hotels. Controlling well-known names like Econo Lodge, Quality Inn, and Clarion Hotels and Resorts, Manor Care was the second-largest franchiser of hotels in the U.S. (The company had a total of more than 200,000 rooms before spinning off its Choice Hotels International Inc. subsidiary in 1996). During the 1980s, Manor Care also acquired Vitalink Pharmacy and expanded its nursing home operations to 150 facilities. Prior to the merger Manor Care consolidated all its nursing home facilities under one name, ManorCare Health Services. It had also planned to separate its health care and facility-development operations, but shifted gears when it combined with HCR. The new giant HCR Manor Care operates under the guidance of HCR chief Paul Ormond. Manor Care CEO Bainum became chairman, but now handles day-to-day business (leading him to quip, "I'm going to have to look through the papers" for a new job). Ormond has the new company in a good position to expand as the population continues to age. The assisted-living market is expected to grow at a 30 percent clip per year, spurring plans for expansion and possible further acquisitions. Even better, company insiders project the merger to save a total of $30 million per year. Such savings are especially crucial in light of declining Medicare payments to nursing homes. To better absorb the financial burden, HCR Manor Care plans to move even further into areas like assisted living and subacute care, which are more dependent on private payments. Unfortunately, between cost cuts and the decrease in importance of Manor Care's Maryland administrative offices, the merger may cost several employees their jobs.
Despite its diversified business operations, Manor Care conducts its hiring and recruiting in a centralized manner. Manor Care's job hotline lists job openings, and its home Web page - www.manorcare.com - provides links to on-line listings and resume-submission options. When hiring for corporate and management positions, Manor Care favors applicants who can demonstrate an in-depth knowledge of the health care or hotel industry.
Manor Care: Come stay with us Manor Care employees praise the company for emphasizing "long-term strategy" and encouraging employees to "build career skills." Manor Care stresses internal promotion - a policy that, combined with the company's "constant growth," creates "endless" opportunities for employees to "advance and acquire more responsibility." While many insiders say that they begin with "low pay" and "rigorous schedules," these promotions make it possible to "start earning more substantial salaries very quickly."
Wade B. O'Brian Recruitment Department P.O. Box 100861 Toledo OH 43699 (800) 642-1593 (800)653-9254
Long-term care;Subacute services;Alzheimer's services;Assisted living;Outpatient Rehabilitation;Institutional Pharmacy
Beverly Enterprises More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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