Ensign Group has been focused on skilled nursing care for some time, but as President and CEO Christopher Christensen noted, it has a tendency to overshadow everything else. There are key benefits to having a core focus with any company, but when there are opportunities that extend beyond that core, neglecting them could lead to missed revenue. That’s why Ensign is adding assisted living and home care to its portfolio.
For Ensign Group, making sure they stay on top of growing demand, especially as it pertains to men and women in need, it appears as though they’ve been focused on capitalizing on every opportunity.
According to prepared remarks Mr. Christensen made during a phone call with shareholders, “While we understand that skilled nursing often overshadows everything else, we’ve been quietly building significant value in our other ventures.” The company has been acquiring agencies that are providing “clinical and financial results” while also helping to boost their skilled nursing operations.
Currently, Ensign holds 21 assisted living ‘campuses’ in 12 states, which equals 7.5% of the company’s total consolidated revenue. Three years ago it only represented 4.8%. According to a news blog by McKnight’s Senior Living entitled, Ensign banks on assisted living, home care for the future, written by Lois A. Bowers, Senior Editor:
“similarly, Cornerstone Healthcare, Ensign’s home health and hospice portfolio company, now represents 7.6% of Ensign’s total consolidated revenue, while only representing a little over 5% of those measures three years ago,” he [Ensign Group President and CEO Christopher Christensen] said. “Collectively, these two business segments along with a few other new healthcare ventures within the portfolio are quickly approaching the size of Ensign when it completed its initial public offering in 2007. And each and everyone of these ventures are independently profitable and self-sustaining.”
The company’s earnings per share missed analysts’ projections by $0.02, coming in at $0.36. However, year over year earnings were up 10.2% with revenue at $471.6 million, which was $21.17 above analysts’ expectations. The assisted living segment for Ensign’s portfolio was up 13.5% and independent living was up 67.5%.
There was no note on why, according to analysts, their earnings per share missed expectations while revenue outpaced anticipated earnings. As more seniors retire and the population of seniors increases compared to other age groups, there’s an expectation of significant growth within the home care and assisted living sectors and as companies like Ensign take a more vested interest in them, it’s unclear what impact this will have on quality of care and support for those who need it in the future.
Latest posts by Valerie VanBooven, RN BSN, Editor in Chief of HomeCareDaily.com (see all)
- Maestro-Connections Home Health Systems to Pay $1M in Fines - December 14, 2017
- New Home Care Registry Law Draws Concern by Some in the Industry - December 13, 2017
- The Unintended Impact of Unexpected Home Care Costs - December 12, 2017