ProMedica on Thursday announced a pair of promotions that will bring a new leadership team at the health system and its skilled nursing subsidiary, HCR ManorCare.
The Toledo, Ohio-based health system promoted Steve Cavanaugh, president of the ManorCare division, to chief financial officer of the entire ProMedica network. Replacing Cavanaugh at the helm of ManorCare is David Parker, currently the SNF chain’s chief operating officer.
The leadership changes will take effect June 3.
Cavanaugh has served as president of the post-acute network since the fall of 2017, when he replaced outgoing leader Paul Ormond amid an internal restructuring. He remained at the helm of ManorCare throughout the company’s acquisition by ProMedica — in conjunction with major real estate investment trust (REIT) Welltower Inc. (NYSE: WELL) — last year.
Parker, meanwhile, has worked at ManorCare for 25 years, holding a variety of leadership positions at the skilled nursing chain. Before taking over as COO, Parker served as vice president and general manager of ManorCare’s central division, while also overseeing its west division on an interim basis.
“Having worked alongside David for decades, I am confident he has the expertise and strategic vision needed to effectively lead HCR ManorCare into the future,” Cavanaugh said in a statement. “I can’t imagine anyone better to lead HCR ManorCare going forward and I look forward to continuing to work with David in his new capacity.”
The two companies remain in the midst of a large-scale integration program after a $4.4 billion deal married their fortunes last summer.
Speaking with Skilled Nursing News last week, Cavanaugh expressed optimism about a $70 million capital infusion ProMedica had provided to ManorCare, contrasting the situation with the chain’s previous capital state under private equity owner The Carlyle Group.
“Because of our capital structure situation — and really, we had operations, if you looked at them, we had a profitable business,” he told SNN. “Our margins were probably better than the vast majority of participants in the industry, our payer mix was better … we just had a ton of leverage, and because of being a privately owned company and the changes that happened with reimbursement, we were just not in a position to reinvest in the business.”
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