Pennant Group, Inc. (NASDAQ: PNTG) has recently announced the acquisition of South Davis Home Health and South Davis Hospice, both based in Utah. The company operates through 111 home health and hospice agencies and 51 senior living communities across multiple states. This acquisition will help the company expand its presence in Utah and complement its existing agencies in central and northern Utah.
The state of Utah has a low population of seniors, accounting for only 12.1% of the population, which is one of the lowest rates in the country. In 2021, around 14,000 Medicare decedents were enrolled in hospice care, 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. The company previously acquired Southwestern Palliative Care & Hospice, as well as conducted hospice-related deals in Texas and Oklahoma.
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 it seeks out new opportunities in the market.
Pennant CEO Brent Guerisol expressed enthusiasm about the acquisition stating that it will enhance their ability to provide hospice services to residents of Davis County and its surrounding areas.
President and COO John Gochnour emphasized the company’s commitment to its acquisition strategy during a recent earnings call reaffirming their goal to acquire operations at attractive valuations in locations where they have established operating clusters and capable leaders to drive results.
As more acquisitions are expected from Pennant Group as they continue to expand their presence in
