The Ensign Group Acquires Healthcare Campus in Nebraska

Rhea-AI Summary

The Ensign Group, Inc. (Nasdaq: ENSG) has announced the acquisition of two healthcare facilities in Norfolk, Nebraska: St. Joseph Rehabilitation and Care Center, an 83-bed skilled nursing facility, and Skyview Villa Assisted Living, a 20 licensed-bed assisted living facility. The real estate was acquired by a subsidiary of Standard Bearer Healthcare REIT, Inc., Ensign's captive real estate company. This acquisition, effective October 1, 2024, expands Ensign's portfolio to 324 healthcare operations across fourteen states, with 30 including senior living operations. Ensign subsidiaries, including Standard Bearer, now own 123 real estate assets.

Barry Port, Ensign's CEO, expressed enthusiasm for the growth in Nebraska and the addition to Standard Bearer's Midwest portfolio. Dave Jorgensen, President of Gateway Healthcare , Ensign's Nebraska-based subsidiary, highlighted the facilities' strong reputation and the team's readiness to provide elevated care.

Positive

• Acquisition of two healthcare facilities in Nebraska, expanding market presence
• Addition of 83 skilled nursing beds and 20 assisted living beds to portfolio
• Expansion of real estate assets through Standard Bearer Healthcare REIT
• Growth of total healthcare operations to 324 across fourteen states
• Strengthening of Midwest portfolio

Negative

• None.

Insights

Financial Analyst

The acquisition of St. Joseph Rehabilitation and Care Center and Skyview Villa Assisted Living in Norfolk, Nebraska, represents a strategic expansion for The Ensign Group. This move adds 83 skilled nursing beds and 20 assisted living beds to their portfolio, now totaling 324 healthcare operations across 14 states. The deal strengthens Ensign's presence in Nebraska and contributes to Standard Bearer Healthcare REIT's Midwest portfolio growth. With 123 real estate assets now owned by Ensign subsidiaries, this acquisition aligns with their strategy of combining operations and real estate ownership. The transaction likely provides immediate revenue potential and long-term value appreciation. However, investors should consider integration costs and the time needed to optimize these new facilities' performance. The company's continued expansion signals confidence in the healthcare real estate sector and their operational model, which could be viewed positively by the market.

Healthcare Industry Expert

Ensign's acquisition in Norfolk, Nebraska, demonstrates their commitment to expanding their skilled nursing and assisted living services in underserved markets. The addition of a 83-bed skilled nursing facility and a 20-bed assisted living facility allows for a continuum of care, which is increasingly important in today's healthcare landscape. This strategic move may enhance Ensign's ability to manage patient transitions and improve overall care quality. The company's growing portfolio, now at 324 facilities, suggests economies of scale that could lead to operational efficiencies and potentially better negotiating power with suppliers and payers. However, the healthcare industry faces challenges such as staffing shortages and regulatory pressures, which Ensign must navigate as they integrate these new facilities. The company's active pursuit of both well-performing and struggling healthcare businesses indicates a confidence in their ability to turn around underperforming assets, a key differentiator in the competitive healthcare services market.

SAN JUAN CAPISTRANO, Calif., Oct. 02, 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 St. Joseph Rehabilitation and Care Center, an 83-bed skilled nursing facility; and Skyview Villa Assisted Living, a 20 licensed-bed assisted living facility. Both facilities are located in Norfolk, Nebraska. 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 October 1, 2024.

“We are thrilled to add these facilities and excited for the growth in Nebraska,” said Barry Port, Ensign's Chief Executive Officer. “This acquisition also enables us to continue adding to Standard Bearer’s growing Midwest portfolio,” he added.

Dave Jorgensen, President of Gateway Healthcare LLC, Ensign’s Nebraska-based subsidiary, added “We could not be more excited to add to our Nebraska footprint with these operations in Norfolk. These facilities have a tremendous reputation in the community and our team is ready to work and provide elevated care and experiences for our patients and their families.”

This acquisition is effective as of October 1, 2024, and brings Ensign's growing portfolio to 324 healthcare operations, 30 of which also include senior living operations, across fourteen states. Ensign subsidiaries, including Standard Bearer, own 123 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 324 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@ensignservices.net

SOURCE: The Ensign Group, Inc.

FAQ

What healthcare facilities did The Ensign Group (ENSG) acquire in Nebraska?

The Ensign Group acquired St. Joseph Rehabilitation and Care Center, an 83-bed skilled nursing facility, and Skyview Villa Assisted Living, a 20 licensed-bed assisted living facility, both located in Norfolk, Nebraska.

When was the acquisition of the Nebraska healthcare facilities by ENSG effective?

The acquisition of the healthcare facilities in Norfolk, Nebraska by The Ensign Group was effective as of October 1, 2024.

How many healthcare operations does The Ensign Group (ENSG) now have after this acquisition?

After this acquisition, The Ensign Group's portfolio has grown to 324 healthcare operations across fourteen states, with 30 of these also including senior living operations.

How many real estate assets does The Ensign Group (ENSG) and its subsidiaries own?

The Ensign Group and its subsidiaries, including Standard Bearer, now own 123 real estate assets following this acquisition.