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Ensign Group Acquires Nursing Facility to Expand in Arizona

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The Ensign Group, Inc. ENSG has purchased the real estate and operations of Surprise Health and Rehabilitation Center in Surprise, AZ. The deal was effective Aug 12, 2019.

As a strategic addition to Ensign Group’s home health and hospice business, the deal would enable the company to expand its presence in Arizona, which in turn, would help it provide high-quality medical care to members in the community. The transaction will allow the company to work with local healthcare communities to meet the requirements of respective members.

With this facility, Ensign’s portfolio now adds up to 201 skilled nursing operations. The company owns the real estate at 79 of its 258 healthcare operations. Ensign Group is making concerted efforts to acquire the real estate and to lease well-performing and struggling skilled nursing, assisted living and other healthcare related businesses in the United States.

One of the company’s growth strategies is to  diversify its portfolio through strategic buyouts. Earlier this month, the company also acquired the operations of Mainplace Senior Living, a 91-unit assisted living community in Orange, CA, the assets of Agape Hospice and Palliative Care and the real estate and operations of The Terrace at Mt. Ogden in UT. All these transactions were effective Aug 1, 2019.

The company boasts a strong inorganic growth story with several acquisitions in the past decade. Its historical progress has been mainly driven by its competence in acquiring real estate or leasing post-acute care operations and transforming the same into market leaders. With each takeover, the company has whetted its efficiency, both clinically and financially. We expect all these buyouts to bode well for the company’s long-term growth.

Shares of this Zacks Rank #2 (Buy) company have surged 42.6% in a year’s time, outperforming its industry’s rally of 16.5%.

Other Stocks to Consider

Investors interested in the medical sector can also take a look at some other top-ranked stocks like Molina Healthcare, Inc MOH, Anthem, Inc. ANTM and Universal Health Services, Inc. UHS. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Molina offers Medicaid-related solutions to meet the health care needs of low-income families and individuals. The stock sports a Zacks Rank #1. In the trailing four quarters, the company came up with average beat of 66.93%.

Anthem works as a health benefits company in the United States. In the last four quarters, the company delivered average beat of 4.57%. The stock carries a Zacks Rank #2 (Buy).

Universal Health operates acute care hospitals, outpatient facilities and behavioral health care facilities. In the previous four quarters, the company’s average beat was 4.46%. The stock holds a Zacks Rank of 2.

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