The Pennant Group, Inc. (NASDAQ: PNTG) is having a good start to the third quarter. The healthcare services company announced on July 1 it acquired two home health & two hospice agencies with multiple locations across southeastern Idaho and northern Utah from Signature Health Care at Home. The acquired locations will operate under the brand Symbii Home Health and Hospice. Pennant Group’s CEO Daniel Walker also disclosed in the announcement that more acquisitions are in the pipeline for the company.
Mr. Walker’s pledge could be a good sign for the Home Health & Hospice market in the second half of 2020. The Pennant Group formed in October 2019 after it was spun out of The Ensign Group (NASDAQ: ENSG). Together with Cornerstone Healthcare, Inc., Pennant’s home health subsidiary, the pair have announced five transactions since, according to our Deal Search Online database, so the companies’ M&A activity could be one of the indicators of market health.
Between the Patient-Driven Groupings Model changes and COVID-19, the sector has been in a state of uncertainty for some time, and many investors are still wondering how to navigate the third quarter, especially as the pandemic surges in the southern and western U.S.
Despite market struggles, The Pennant Group managed to close a deal on May 18, when it acquired two hospice agencies in Arizona. The targets were Prime Hospice, operating in the Phoenix metro area, and Harmony Hospice of Arizona, located in Kingman and serving northwestern Arizona.
Cornerstone Healthcare last announced a deal on March 2 when it bought Hospice of Missoula, which provides hospice services and palliative care in western Montana. This acquisition marked Cornerstone Healthcare’s entry into the Montana market. In January, Cornerstone closed a deal in Arizona, adding Desert View Home Health to its network.
Our readers can find out more about the second quarter’s results from our upcoming Healthcare M&A Quarterly Report and by subscribing to our monthly newsletter.