The Ensign Group Acquires Long-Term Acute Care Hospital and Skilled Nursing Facility in Utah
The Ensign Group, Inc. (Nasdaq: ENSG) has acquired South Davis Specialty Care, a 95-bed skilled nursing operation, and Western Peaks Specialty Hospital, a 43-bed long-term acute care hospital in Utah. This marks the company's first long-term acute care hospital acquisition. Ensign also acquired six other operations, expanding its portfolio to 310 healthcare facilities across fourteen states. The acquisitions aim to enhance the company's service offerings and provide top-notch care to patients.
Expansion of Ensign's portfolio to 310 healthcare facilities across fourteen states.
Acquisition of South Davis Specialty Care and Western Peaks Specialty Hospital marks Ensign's first venture into long-term acute care hospitals.
Opportunities to acquire struggling healthcare businesses to improve their performance in the United States.
Enhanced leadership in place for a successful transition into a new line of business.
Combining experienced teams to provide top-notch care for patients and their families.
Potential risks associated with acquiring struggling healthcare businesses.
Increased operational complexity due to the addition of new facilities.
SAN JUAN CAPISTRANO, Calif., May 01, 2024 (GLOBE NEWSWIRE) -- The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign™ group of companies, which invest in and provide skilled nursing and senior living services, physical, occupational and speech therapies, other rehabilitative and healthcare services, and real estate, announced today that it acquired the real estate and operations of South Davis Specialty Care a 95-bed skilled nursing operation, located in Bountiful, Utah and Western Peaks Specialty Hospital, a 43-bed long-term acute care hospital (LTACH) located in Bountiful, Utah. The real estate was acquired by a subsidiary of Standard Bearer Healthcare REIT, Inc., Ensign’s captive real estate company, and the acquisition is effective as of May 1, 2024.
“This acquisition represents a milestone in our organization, as it is the first acquisition of a long-term acute care hospital in our company’s history,” said Barry Port, Ensign's Chief Executive Officer. “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. We are extremely humbled and honored to have been chosen to continue the legacy of these well-respected operations,” he added.
“We are pleased to combine such a devoted and experienced team to our existing operational and clinical leaders in Utah and we are confident that they are poised to accomplish great things together at these operations,” said Steve Farnsworth, President of Milestone Healthcare LLC, Ensign’s Utah-based subsidiary. “We are excited to work together with our healthcare partners as we strive to provide top-notch care for our patients and their families.”
In separate transactions on the same day, Ensign announced that it acquired six other operations, three of which included real estate assets that were acquired by Standard Bearer. Each of these new facilities will be operated by an Ensign affiliated operator, including the following:
- River Park Post Acute and Elmwood Senior Living, a healthcare campus with 66 bed skilled nursing beds, 45 assisted living units and 119 independent living units located in Chandler, Arizona;
- Spencer Post Acute Rehabilitation Center, an 82-bed skilled nursing facility located in Spencer, Iowa; and
- Hillside Village of De Soto Rehabilitation and Nursing Center, a facility with 49 skilled nursing beds and 38 assisted living units, located in De Soto, Kansas.
Also, on the same day, Ensign announced that its affiliates acquired the following operations, which will be subject to long-term, triple net leases:
- Creekview Health and Rehabilitation, a 78-bed skilled nursing facility located in Knoxville, Tennessee;
- Foothills Transitional Care and Rehabilitation, a 135-bed skilled nursing facility located in Maryville, Tennessee; and
- Midlothian Healthcare Center, a 120-bed skilled nursing facility located in Midlothian, Texas.
All of these acquisitions are effective as of May 1, 2024 and bring Ensign's growing portfolio to 310 healthcare operations, 29 of which also include senior living operations, across fourteen states. Ensign subsidiaries, including Standard Bearer, own 119 real estate assets. Mr. Port reaffirmed that Ensign is actively seeking opportunities to acquire real estate and to lease both well-performing and struggling skilled nursing, senior living and other healthcare related businesses throughout the United States.
About Ensign™
The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 310 healthcare facilities in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Tennessee, Texas, Utah, Washington and Wisconsin. More information about Ensign is available at http://www.ensigngroup.net.
Contact Information
The Ensign Group, Inc., (949) 487-9500, ir@ensigngroup.net
SOURCE: The Ensign Group, Inc.
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