The Pennant Group, a separately traded company, but a wholly-owned subsidiary of Ensign, would pick up Ensign’s home health and hospice operations, most of its senior living operations, plus mobile diagnostic and clinical laboratory operations.
Once the deal is complete The Ensign Group, Inc., will limit itself to transitional and skilled services, rehabilitative care services, healthcare campuses, post-acute-related new business ventures and real estate investments.
Ensign’s President and Chief Executive Officer, Mr. Christopher R. Christensen,
As we have emphasized repeatedly over the last several quarters, our home health, hospice and senior living leaders have created significant value as they have embraced and applied Ensign’s innovative operating model. As a result of consistently achieving outstanding clinical results, Pennant has become the partner of choice in the markets they serve, and it shows in their financial and clinical results.
If the deal closes at the end of 2019, Pennant’s portfolio will expand by 60 home health and hospice agencies and 51 senior living operations.
Daniel Walker, president of Ensign’s home health and hospice holding company, Cornerstone Healthcare Inc. will become chairman, CEO and president of Pennant.
Christensen will step down from his role as Ensign CEO the end of this month. Barry Port, the current CEO for the skilled nursing division, will replace Christensen.
Analysts estimate Pennant could push its base 2018 EBITDA by about 15 percent in 2019 and 2020 to $28.4 million and $32.6 million, respectively. Ensign will retain all existing owned real estate assets and will continue its purchasing strategy – including leasing 28 senior living assets to Pennant following the spinoff.
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Get details on how Ensign’s spinoff unlocks senior housing potential in Senior Housing News