Ensign Enters Oregon, Alaska with Providence Portfolio Acquisition

The Ensign Group (Nasdaq: ENSG) will be adding eight facilities from Providence Home and Community Care across four states: Alaska, Washington, Oregon and California.

This marks the first time the San Juan Capistrano, California-based company is expanding into Alaska and Oregon, Ensign Chief Investment Officer Chad Keetch said in a statement. This brings Ensign’s growing portfolio to 330 health care operations across 16 states.

“We have proven Ensign leaders that will be planting the flag in both these new markets, and they will be looking to expand and establish new clusters in the future,” Keetch said. The move follows other acquisition announcements by Ensign throughout the year, with the group in May adding eight properties in six states, and another eight in September across Kansas and Colorado.

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Transitioned properties have had solid operational performance, Ensign said during its 3Q earnings call in October. Leadership relies heavily on local clusters and existing operations prior to pulling the trigger on any acquisition, Port said at the time.

All eight facilities will be purchased by Standard Bearer Healthcare REIT, Ensign’s captive real estate subsidiary; the purchase price was not disclosed. Six of the eight facilities will be operated by Ensign-affiliated operating companies, and two facilities will be operated by a third-party tenant entering into a new, long-term triple net lease with Standard Bearer as landlord.

“We are honored and excited for the opportunity to partner with Providence Health to transition these buildings into the Ensign family,” Ensign CEO Barry Port said in a statement. “We have profound respect for Providence and believe our values and culture are a great fit.”

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Providence is a national, not-for-profit Catholic health system with 51 hospitals and more than 1,100 physician clinics, senior services, supportive housing and other health and educational services.

Dianna Reely, chief of residential services for Providence Home and Community Care, said the team underwent an “exhaustive search” and “thoughtful, ethical discernment” prior to choosing Ensign and its affiliates for the deal.

“We believe that Ensign brings the expertise, resources and scale needed to transform and sustain these care centers and help to ensure our local communities have continued access to these vital facilities into the future,” said Reely.

Providence has been carefully evaluating the future of skilled nursing facilities and assisted living facilities, as these are difficult to operate, Providence communication director for home and community care Mary Beth Walker told Skilled Nursing News.

“While we have made significant improvements in our skilled nursing and assisted living operations, our efforts have not been enough to support needed investments and modernizations to the level our communities, patients and caregivers deserve and in a way that best positions us to meet future needs,” said Walker.

Providence will continue serving its communities regardless of who owns operations, she said.

“We believe this is the best option for our patients, residents, their families and for our incredibly valued caregivers,” Walker noted. “This is an opportunity to bring together two mission-driven organizations with a shared commitment to high-quality and compassionate care.”

Port hopes Ensign will bring some additional tools and resources to enhance services for Providence patients and families. That includes Point Click Care as electronic medical record system and processes for rapid recruitment of caregivers, Walker told SNN.

“Ensign also has the capital to invest in these facilities to modernize them in a way Providence hasn’t been able,” said Walker.

Port reaffirmed that the organization is actively seeking several other transactions to acquire real estate and lease both well-performing and struggling skilled nursing, senior living and other health care related businesses across the country.

In other recent Ensign news, the company added Mark Parkinson to its board of directors. Parkinson recently ended his tenure as CEO of the largest U.S. nursing home provider association, the American Health Care Association/National Center for Assisted Living (AHCA/NCAL).

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