In October 2019, The Ensign Group (NASDAQ: ENSG) and The Pennant Group, Inc. (NASDAQ: PNTG) announced the completion of Pennant’s spin-off. The two separated to give investors more and better industry-specific options; The Ensign Group will stay focused on services ranging from skilled nursing to various forms of therapy and rehab, while The Pennant Group will operate in the home health and hospice and senior living markets. The latter is comprised of two of Ensign’s former subsidiaries, Cornerstone Health and Pinnacle Senior Living.
And now in early 2020, The Pennant Group is keeping its promise and wasting no time to expand.
In early January, Cornerstone Healthcare acquired Desert View Home Health, which provides an array of home health services, including skilled nursing, physical, occupational and speech therapy, medical social worker, private duty nursing and certified nursing assistants. Desert View Home Health will merge with a Cornerstone affiliate and subsidiary in southern Nevada. The company will be renamed Comfort Home Health and Hospice.
Although it was announced before the spin-off was completed, Pennant also purchased Agape Hospice and Palliative Care in August, which provides hospice services out of a home office in Tucson, Arizona. That company will also fall under Cornerstone’s portfolio.
We’re still waiting for the company’s Q4 results, but according to its Q3 earnings, Pennant Group generated $88.4 million revenue, an increase of $15.4 million or 21.2% over the prior-year quarter, with $55.2 million of that from its home health portfolio.
