The Pennant Group Inc. (Nasdaq: PNTG) announced Wednesday that it has acquired CMS Home Health Care, a Texas agency with locations in Brownwood and Coleman.
“With sister operations in Abilene, Austin and Dallas, this off-market acquisition is an excellent strategic fit for our burgeoning Texas portfolio of home health and hospice operations,” Pennant Group CEO Danny Walker said in a statement.
The Eagle, Idaho-based Pennant Group is the parent company of several affiliated home health, hospice and senior living subsidiaries. Within its network, the Pennant has 72 home health and hospice agencies, along with 54 senior living communities, in 14 states.
In August, Walker expressed optimism for Pennant’s long-term outlook, its M&A pipeline and its progress adapting to the Patient-Driven Groupings Model (PDGM).
“We believe it’s too early to draw conclusions about the long-term effects of PDGM,” Walker said while discussing the company’s second-quarter financial results. “So far, our current results are ahead of expectations.”
The Pennant Group’s total revenue was $92.7 million in Q2 2020, an increase of about 12% compared to the prior year’s quarter. The company’s home health and hospice services segment revenue was $58 million, a nearly 16% increase year-over-year.
“The team at CMS Home Health has a reputation for compassionate care and excellent clinical outcomes,” Brent Guerisoli — president of Cornerstone Healthcare, Pennant’s home health and hospice portfolio company — said in a statement. “We are excited to welcome the staff and patients of this well-respected home health agency into the Pennant family.”
Nova Leap expands footprint
Nova Leap Health Corp. (TSXV: NLH) — which is based in Halifax, the capital of the Canadian province of Nova Scotia — has continued expanding its footprint in the U.S. Its latest moves came earlier this month through acquisitions in New England and the South Central region.
Nova Leap is a rapidly growing home care services company that operates in the U.S. and Canada. Its goal is to become the largest independent, dementia-focused home care provider in North America, CEO Chris Dobbin told Home Health Care News in 2019.
While full details haven’t been made public, the New England acquisition is being made through a transaction of $660,000 — with $465,000 payable with cash on closing. The South Central acquisition is said to be for $250,000, $200,000 of which is payable with cash on closing.
The company completed acquisitions in both markets late last year, in Massachusetts with the acquisition of Keystone Home Care LLC and Oklahoma with Around the Clock Home Care LLC.
“Our expansion into the South-Central region a year ago has gone very well,” Dobbin said in a statement announcing the new acquisitions. “We view the South-Central region as a growth area for us similar to the significant growth we have experienced in New England.”
Texoma Medical Center to offer home health services
Texoma Medical Center — a 414-bed acute care hospital located in Denison, Texas — has acquired Northeast Medical Center Home Health (NEMC) to begin offering home health to its patients.
The acquisition helps Texoma get closer to its goal of making the overall care process more seamless for its patients.
“NEMC has been serving Fannin County since 2007,” Jon Sisk, owner of NEMC, said in a statement. “For the last 13 years, we have been proud to be your community provider for home health care. After much thought and discussion, we made the decision to sell to Texoma Medical Center.”