Speaking with the National Investment Center for the Seniors Housing and Care Industry, Jerry Doctrow, Senior Advisor at Stifel, Nicolaus & Company, said he expects to see further consolidation happening in the skilled nursing space.
“We need more clarity before volumes pick back up significantly and consolidation will both be focused on facilities and on related services like home health and hospice,” said Doctrow.
We are already seeing this happen with companies like Ensign Group, Inc. (NASDAQ:ENSG) acquiring Connected Home Health, a small home health agency based in Portland, Oregon, in February 2012. Ensign owns and operates other home health franchise through its affiliates of Cornerstone Healthcare, Inc., Ensign’s home health and hospice-based portfolio subsidiary.
Emeritus Senior Living has also said it’s considering making a move into the home health care market. In an interview with Senior Housing News, Granger Cobb, president of Emeritus said that right now the company is just referring the business out, but it’s possible they’re offer their own services in the future.
“If we have a licensed home health agency that can fit in nicely with our home visit program, it probably offers even more options in terms of how we can benefit seniors at home.”
Written by John Yedinak