Mainstreet Property Group and The Ensign Group, Inc. (NASDAQ: ENSG) today announced they will embark on a partnership that will start with the development of five new “healthcare resorts” in Texas and Kansas.
The joint venture partners will team up to develop and operate what they are calling NextGeneration Medical Resorts, which will be full-service healthcare resorts offering a variety amenities within “spa-like” surroundings.
For starters, the two companies plan to break ground in Waco, Plano and Olathe in Texas, as well as Overland Park and Kansas City in Kansas.
“Mainstreet is thrilled to partner with a company like Ensign, which feels as passionately as we do that aging Americans desire and deserve more than the generation before them—more services, more amenities, more attention,” stated Mainstreet Chairman and CEO Zeke Turner.
Resort-style senior living communities that blend hospitality with skilled healthcare services are right within the wheelhouse of Mainstreet. The company’s Wellbrooke of Westfield skilled nursing facility in Westfield, Indiana, received top honors in the 2013 Senior Housing News Design Awards.
“Ensign is very excited to have the opportunity to work with a cutting-edge developer that shares our vision for patient-centered healthcare in an environment that is carefully designed to cater to the evolving demands of the growing population of Baby Boomers,” stated Ensign President and CEO Christopher Christensen. “Adding these facilities to our growing number of operations provides yet another lever we can pull as we seek to become the provider of choice in every market we serve.”
As a result of the partnership, Mainstreet will be able to broaden its footprint outside of its home state of Indiana, which has seen recent discussions among state legislators considering a moratorium that would halt new nursing home developments.
“Indiana is on the brink of setting the state back by years in terms of health care innovation,” said Turner in an email to SHN. “All around the U.S., states are recognizing that the health care tide is shifting. No longer will the consumer—the voter—accept functionally obsolete facilities as their only option.”
Mainstreet and The Ensign Group also have plans to grow their relationship and partner on additional locations.
The companies did not disclose development costs or financing plans for the new projects.
Written by Jason Oliva