The Ensign Group, Inc. recently announced that its operating subsidiaries have acquired nine skilled nursing and assisted living facilities from Careage Management, LLC, as well as home health agency Careage Home Care, all located in either Nebraska or Iowa.
The acquisition brought 489 skilled nursing facility beds and 72 assisted living units to Ensign’s portofolio, which it paid for with cash.
“We expect the former Careage facilities to pave the way for additional disciplined growth in Nebraska, Iowa and the Midwest,” said Christopher Christensen, Ensign’s President and Chief Executive Officer, adding that Ensign expects the portfolio, which had an occupancy rate at transfer of approximately 74%, to be operationally accretive to earnings in 2011.
Christensen said the recently-acquired facilities have a relatively high percentage of private pay residents, which mean they rely less on state Medicaid programs for revenue compared to most other Ensign acquisitions. He also mentioned Ensign’s proclivity for smaller portfolios, and said this trend will continue, despite the larger portfolio acquisition; the company is looking to acquire more long-term care operations across the United States.
This most recent acquisition brings Ensign’s portfolio to 96 healthcare facilities, three hospice companies, and three home health businesses, located in 10 states.
Written by Alyssa Gerace