The Pennant Group Inc. (NASDAQ: PNTG) has acquired Idaho-based Bluebird Home Health, Bluebird Hospice and Bluebird Home Care for an undisclosed sum.
The transaction follows Pennant’s May acquisition of the assets of Benefit Home Healthcare and Benefit By Your Side, a Colorado-based company that offers home health care, private duty and community health services. Financial terms were undisclosed.
“We are thrilled to partner with Bluebird in expanding our operations in the state of Idaho,” Brent Guerisoli, CEO of Pennant, said in a statement. “We are honored by the trust of our partners at Cascadia Healthcare, Bluebird’s prior owner, to continue Bluebird’s legacy of providing high-quality clinical care. We look forward to continuing to strengthen our relationship with these continuum partners as we work together to create value in meeting the needs of our shared patients, referral sources and payor partners.”
Pennant has its sights on multiple potential transactions across its hospice, home health and senior living business lines, the company has indicated in earnings calls.
The provider targets sellers based mainly on “long-term upside value” and the availability of qualified local executives who can take their new operations in hand, according to previous statements by Guerisoli.
Last summer, Pennant purchased Ardent Hospice and Palliative Care in the San Diego region for a confidential amount.
The Pennant Group Inc. is a holding company of independent operating subsidiaries that provide health care services through 97 home health and hospice locations in 14 western and midwestern states.
The company earned $126 million in revenue during Q1, up 11% from $12.6 million in the prior year’s quarter. Its hospice business accounted for nearly $43.3 million, an increase from $37.8 million in Q1 2022.
Demographic tailwinds and high utilization rates make Idaho an attractive market for Pennant, which is also based in that state.
About 21% of the state’s population is 65 or older, according to the U.S. Census Bureau. And in 2020, about 54.1% of its Medicare decedents elected hospice care, the National Hospice and Palliative Care Organization reported.
“Bluebird’s operations fit uniquely within the strong continuum of care we have successfully built in Idaho over the last 12 years,” John Gochnour, president and COO of Pennant Group, said in a press release. “This transition brings with it a strong group of operational and clinical leaders and outstanding clinicians who have made a meaningful impact in Southwest Idaho’s health care continuum over the last few years.”