The Ensign Group on Wednesday announced a sweeping package of deals that will kickstart growth in one market, expand its footprint in five others and make the company a player in a new post-acute segment.
The acquisition news regarding eight facilities came ahead of Ensign’s first-quarter earnings report published Wednesday evening and a first-quarter earnings call scheduled for today.
The California-based company posted another record quarter, with one key income measure 15% ($68.8 million) above the last quarter of 2023. The company also announced occupancy at facilities it has owned for at least a year increased by 2.7% since the first quarter of 2023 to reach 81%.
The growth in census, now at its highest level since early 2020, and an increasing share of patients needing higher-paying skilled care has driven consistent expansion of the portfolio in recent months. The company listed 13 acquisitions so far for 2024 in its first quarter materials. It is believed to be among the three largest skilled nursing operators in the US.
“As strong as our performance has been, we continue to see enormous opportunities inherent in our portfolio, both in existing operations and the growing number of new acquisitions,” Ensign CEO Barry Port said in a statement Wednesday.“We are eager to continue to drive improvements in our existing portfolio and to take advantage of the many acquisition opportunities we see on the horizon.”
Among its latest pick-ups is Spencer Post Acute Rehabilitation Center, which Ensign described as an 82-bed skilled nursing facility in Spencer, IA. Ensign’s real estate company, Standard Bearer Healthcare REIT Inc., bought the property effective May 1 for an undisclosed price.
“We are thrilled to be growing in Iowa again, after many years of focused leadership and preparing for additional growth,” Port said in a press release describing that deal.
The only local 82-bed facility listed in Care Compare is Longhouse-Northshire, which has a 1-star overall rating. That would make it a good fit for the Ensign growth model, which often prioritizes properties and operations where it can improve census or services or otherwise add value.
In another transaction, Ensign purchased both the real estate and operations of South Davis Specialty Care, a 5-star, 95-bed skilled nursing operation, and Western Peaks Specialty Hospital, a 43-bed long-term acute care hospital. Both are located in Bountiful, UT.
In a press release, Port called the Western Peaks acquisition “a milestone” for Ensign; it is the company’s first long-term acute care hospital.
“We have been carefully reviewing this opportunity for some time and believe we have the leadership in place for a successful transition into a new line of business,” Port said, noting both Utah facilities’ legacy of quality. South Davis has twice won the American Health Care Association’s Gold Quality Award, most recently in 2022.
Other deals announced yesterday by Ensign included the purchase of real estate and operations at Hillside Village of De Soto Rehabilitation and Nursing Center, a facility with 49 skilled nursing beds and 38 assisted living units in De Soto, KS.
Ensign also purchased the following skilled nursing operations, subject to long-term, triple net leases:
- The 78-bed Creekview Health and Rehabilitation in Knoxville, TN;
- The 135-bed Foothills Transitional Care and Rehabilitation in Maryville, TN; and
- The 120-bed Midlothian Healthcare Center, in Midlothian, TX.
Including all of those purchases, Ensign now has 310 healthcare operations in its 14-state portfolio. Twenty-nine of those include senior living assets.
