The Ensign Group Plans to Capitalize On The Value of its Owned Real Estate

The Ensign Group reported net income of $46.3 million in the fourth quarter of 2020 and $170.5 million for the year total — while returning $33 million more in federal aid designed to help skilled nursing operators weather the COVID-19 pandemic during the period.

Ensign, starting in the fourth quarter of 2020, began reporting the results of its real estate portfolio as a new segment. This new real estate segment is comprised of properties owned and leased to skilled nursing and senior living operations, 64 of which the company operates, and 31 of which are leased to The Pennant Group.

Ensign does not believe that having acquirers purchase and leaseback the real estate is the best way to advance the company’s mission and maximize long-term shareholder value. Ensign plans to continue to build equity value in these assets by making them essential within the care continuum to each market they serve.

Ensign’s independent operating subsidiaries provide a broad spectrum of skilled nursing and assisted living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 231 healthcare facilities and approximately 23,000 skilled nursing beds, in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin.

Ensign’s affiliated entities offer a broad spectrum of post-acute care including assisted living, skilled nursing, and rehabilitative care. In recent years, Ensign has significantly expanded its operations. Affiliated entities are located across more than a dozen states, and the company is continuing to grow.

With that growth, Ensign is innovating and designing best-practice solutions to lower the cost and improve the quality of its care. Ensign partners with many other healthcare organizations across its service area with the goal of ensuring patients are receiving the best possible care.


Takeaway: Ensign’s organizational structure centered upon local leadership who have the power to make their operation the “operation of choice” in the community it serves has been a key contributor to the company’s success during the pandemic