In recent news, The Pennant Group, Inc. (NASDAQ: PNTG) has acquired South Davis Home Health and South Davis Hospice, both based in Utah. The Pennant Group operates through 111 home health and hospice agencies and 51 senior living communities across multiple states. This acquisition will help the company expand in the state of Utah and complement its existing agencies in central and northern Utah.
Pennant CEO Brent Guerisol expressed excitement about the acquisition, stating that it will enhance their ability to provide hospice services to residents of Davis County and its surrounding areas. In Utah, seniors account for just 12.1% of the population, making it one of the lowest rates in the country. However, around 14,000 Medicare decedents were enrolled in hospice care in 2021 as reported by the U.S. Centers for Medicare & Medicaid Services (CMS). Pennant has a history of targeting underperforming M&A opportunities with significant turnaround potential, particularly in rural areas.
In terms of financial performance, The Pennant Group reported total revenue of $544.9 million for the full-year 2023, representing a 15.1% increase over the previous year. The company’s home health and hospice services segment generated $394.5 million in revenue for the same period, marking a 15.3% increase year-over-year. With strong financial results and a focus on strategic acquisitions, The Pennant Group is poised for further growth in the coming year as they seek out new opportunities in the market.
President and COO John Gochnour emphasized The Pennant Group’s commitment to its acquisition strategy during a recent earnings call, reaffirming their goal of acquiring operations at attractive valuations in locations where they have established operating clusters and capable leaders to drive results.
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