Cornerstone Acquires Preceptor Health Care

Cornerstone Healthcare, Inc., the hospice and home health subsidiary of the Mission Viejo, Calif.-based health care firm The Ensign Group, Inc.(NASDAQ: ENSG), effective June 1 acquired the assets of Wisconsin-based hospice, home health, and therapy provider Preceptor Health Care. Financial terms were not disclosed.

With this acquisition, Ensign operates 27 hospice agencies, in addition to 198 skilled nursing facilities, 56 assisted and independent living locations, 26 home health agencies, and nine home care locations in 16 states.

“This strategic acquisition allows Cornerstone to partner with Ensign’s skilled nursing and senior living facilities in the area,” said Christopher Christensen, Ensign’s president and chief executive officer in a statement. “Providing this full range of services gives us a unique opportunity to improve outcomes and reduce rehospitalization rates for those patients who entrust us with their care.”

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Ensign Group indicated that the company intends to continue pursuing acquisitions opportunities. The company announced last month that it would spin off its hospice, home health, and senior living operations into a publicly traded company, The Pennant Group Inc., saying that the split would not slow its M&A activity.

This is the third significant transaction for Cornerstone during 2019. In May the hospice provider acquired the assets of Texas-based Resolutions Hospice for an undisclosed amount. Earlier this year, Cornerstone purchased another Texas provider, All County Home Health and Hospice. Financial terms of the All Country transaction were also undisclosed.

The company’s most recent acquisition, Preceptor, was formed in 2013 in the merger of Serenity Hospice Care, Easy Living Home Health Care Agency, and Mueller Therapy. Preceptor specializes in providing care in assisted living facilities, nursing homes, group homes, and private residences.

“Preceptor has a deeply committed team that has set a high standard for providing exceptional home health, hospice, and therapy services in eastern Wisconsin,” said Daniel Walker, Cornerstone’s president and CEO. “We are pleased to continue and seek to enhance the strong community partnerships with hospitals, physician groups, skilled nursing facilities and senior living communities, including some of our own Ensign affiliates, as we seek to provide life changing service to patients across eastern Wisconsin.”On the same day as the Preceptor transaction, Ensign announced that it obtained the real estate and operations of Golden Palms Rehabilitation and Retirement, a 60-bed skilled nursing operation and a senior living center with 38 assisted living beds and 92 independent living units.

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