Welltower and Jefferson Announce Framework for Real Estate Investments, Care for Aging Populations
Agreement would create a Joint Venture of asset allocation and enhance care at Welltower senior housing, assisted living and memory care communities
PHILADELPHIA, PA and Toledo, Ohio — Toledo-based real estate investment trust Welltower (NYSE: WELL) and Philadelphia-based Thomas Jefferson University and Jefferson Health (Jefferson) announced today their intention to create a long-term strategic partnership that will transform Jefferson’s real estate portfolio and open new opportunities to address social determinants of health for aging populations across their shared geographic footprint.
Under the terms of a Memorandum of Understanding (MOU) signed by both parties, Welltower and Jefferson would create a joint venture whereby Welltower would acquire a stake in certain real estate assets of Jefferson, enabling Jefferson to reduce some of its fixed asset investments and redeploy the capital to other clinical and academic strategic areas.
In addition to the joint venture, Welltower would help Jefferson accelerate its ambulatory care growth strategy through capital support and its best-in-class predictive analytics to guide future real-estate investments based on where Jefferson clinical services would best serve the public.
“This partnership with Welltower will be a crucial step forward in achieving our ‘healthcare with no address’ innovation strategy,” said Stephen K. Klasko, MD, MBA, President of Thomas Jefferson University and CEO of Jefferson Health. “By partnering with the best companies across varied sectors, we can bring world-class healthcare from the hospital to the home. We’re thrilled that the great team at Welltower is looking to Jefferson to advance our shared ambitious aim of creating healthier communities.”
Additionally, Jefferson’s clinicians would provide care at the Welltower senior housing, assisted living and memory care communities throughout the region as well as future ones the organizations could build together. This would mean Jefferson clinicians could manage residents’ full continuum of care – from pre-acute to acute and now post-acute.
This would mark a first-of-its-kind partnership between Welltower and a major academic health system.
“This landmark joint venture partners Welltower, the leading health and wellness delivery platform, with one of the largest and most innovative health systems in the United States,” said Thomas J. DeRosa, Chairman and CEO of Welltower. “Welltower and Jefferson are well aligned in our thinking that much of the current built environment for healthcare delivery cannot meet the promise of technological innovation and value-based care. Jefferson, a leader in delivering care outside the hospital walls, together with Welltower, will work to ensure that Jefferson’s healthcare delivery infrastructure will deliver care more efficiently, cost effectively and with improved outcomes.”
Welltower and Jefferson foresee residents at their facilities being tracked by Jefferson clinicians through wearable devices, alert messaging integrated into electronic medical records, mobile-enabled communications and wellness tracking to reduce some of the social determinants that negatively impact health outcomes.
“These living facilities could truly provide healthcare services with the future in mind,” Klasko added. “An environment where you wake up and your home monitor device has collated the data from your wearable device and medical history and cross referenced that data with the day’s pollen count to make recommendations on how you should manage your day. This is what we mean when we talk about Jefferson using creative strategic partnerships and innovation to change healthcare.”
Jefferson and Welltower anticipate that a definitive agreement will be executed in the coming 90 days.
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