The Ensign Group, Inc. and its consolidated subsidiaries (Ensign) provide skilled nursing, senior living and rehabilitative services, as well as other ancillary businesses (including mobile diagnostics and medical transportation) in 15 states.
In addition, certain of the company’s wholly-owned independent subsidiaries, collectively referred to as the Service Center, provide centralized accounting, payroll, human resources, information technology, legal, risk management and other centralized ser...
The Ensign Group, Inc. and its consolidated subsidiaries (Ensign) provide skilled nursing, senior living and rehabilitative services, as well as other ancillary businesses (including mobile diagnostics and medical transportation) in 15 states.
In addition, certain of the company’s wholly-owned independent subsidiaries, collectively referred to as the Service Center, provide centralized accounting, payroll, human resources, information technology, legal, risk management and other centralized services to the other independent subsidiaries through contractual relationships with such subsidiaries. The Captive Insurance provides some claims-made coverage to the company’s independent subsidiaries for general and professional liability, as well as for certain workers' compensation insurance liabilities. Standard Bearer owns and manages the company’s real estate business. Ensign is the company’s United States trademark.
As part of the company’s investment strategy, the company also acquires, leases and owns healthcare real estate to service the post-acute care continuum through acquisition and investment opportunities in healthcare properties. For the year ended December 31, 2024, the company generated approximately 95.7% of the company’s revenue from its skilled nursing facilities. The remainder of the company’s revenue is primarily generated from the company’s real estate properties, senior living services and other ancillary services.
Operations
As of December 31, 2024, the company offered skilled nursing, senior living and rehabilitative care services through 327 skilled nursing and senior living facilities. Of the 327 facilities, the company operated 231 facilities under long-term lease arrangements and has options to purchase 12 of those 231 facilities. The company’s real estate portfolio consists of 129 owned real estate properties, which included 96 facilities operated and managed by the company, 33 operations leased to and operated by third-party operators, and the Service Center's California location. Of the 33 third-party operations, one senior living operation is located on the same real estate property as a skilled nursing operation that the company owns and operates.
Segments
The company has two reportable segments: (1) Skilled Services, which includes the operation of skilled nursing facilities and rehabilitation therapy services; and (2) Standard Bearer, which is consisted of select properties owned by the company through its captive REIT and leased to skilled nursing and senior living operations, including the company’s own independent subsidiaries and third-party operators.
The company also reports an ‘all other’ category that includes operating results from its senior living operations, mobile diagnostics, transportation, other real estate and other ancillary operations.
Skilled Services
As of December 31, 2024, the company’s skilled nursing companies provided skilled nursing care at 316 operations, with 33,547 operational beds, in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Tennessee, Texas, Utah, Washington and Wisconsin. The company provides short and long-term nursing care services for patients with chronic conditions, prolonged illness, and the elderly. The company’s residents are often high-acuity patients that come to the company’s facilities to recover from strokes, cardiovascular and respiratory conditions, neurological conditions, joint replacements, and other muscular or skeletal disorders. The company uses interdisciplinary teams of experienced medical professionals to provide services prescribed by physicians. These medical professionals provide individualized comprehensive nursing care to the company’s short-stay and long-stay patients. Many of the company’s skilled nursing facilities are equipped to provide specialty care, such as on-site dialysis, ventilator care, cardiac and pulmonary management. The company also provides standard services, such as room and board, special nutritional programs, social services, recreational activities, entertainment, and other services. The company is dedicated to ensuring its residents are happy, comfortable, and motivated to achieve their health goals through the provision of quality care. The company generates its skilled services revenue from Medicaid, Medicare, managed care, commercial insurance, and private pay. During the year ended December 31, 2024, approximately 46.9% and 25.9% of the company’s skilled services revenue was derived from Medicaid and Medicare programs, respectively.
Standard Bearer
This segment engages in the acquisition and leasing of skilled nursing and senior living properties. The company generates rental revenue primarily by leasing post-acute care properties the company acquired to healthcare operators under triple-net lease arrangements, whereby the tenant is solely responsible for the costs related to the property, including property taxes, insurance and maintenance and repair costs, subject to certain exceptions. As of December 31, 2024, the company’s real estate portfolio within Standard Bearer was consisted of 124 real estate properties located in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Tennessee, Texas, Utah, Washington and Wisconsin. Of these properties, 92 are leased to the company’s independent subsidiaries and 33 are leased to operations wholly-owned and managed by third-party operators. Of the 33 third-party operations, one senior living operation is located on the same real estate property as a skilled nursing operation that the company owns and operates.
Other
Revenue from the company’s senior living operations, mobile diagnostics, transportation, other real estate and other ancillary operations comprise approximately 4.5% of the company’s annual revenue.
Senior Living — As of December 31, 2024, the company had an aggregate of 3,088 senior living units across 41 operations, of which 30 were located on the same site location as the company’s skilled nursing care operations. The company’s senior living communities located in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Texas, Utah and Washington, provide residential accommodations, activities, meals, housekeeping and assistance in the activities of daily living to seniors who are independent or who require some support, but not the level of nursing care provided in a skilled nursing operation. The company’s independent living units are non-licensed independent living apartments in which residents are independent and require no support with the activities of daily living.
The company’s senior living operations comprise approximately 2.1% of its annual revenue. The company generates revenue at these operations primarily from private pay sources, Medicaid and other state-specific programs. Specifically, during the year ended December 31, 2024, approximately 60% of the company’s senior living revenue was derived from private pay sources.
Ancillary — As of December 31, 2024, the company’s independent subsidiaries operate ancillary services located in Arizona, California, Colorado, Idaho, Texas, Utah and Washington. The company has invested in and is exploring new business lines that are complementary to the company’s existing skilled services and senior living services. These new business lines consist of mobile ancillary services, including digital x-ray, ultrasound, electrocardiograms, sub-acute services, dialysis, respiratory, long-term care pharmacy and patient transportation to people in their homes or at long-term care facilities. To date, these businesses were not meaningful contributors to the company’s operating results.
Revenue Sources
The company derives revenue primarily from the Medicaid and Medicare programs, managed care and commercial insurance payors and private pay patients. The majority of the company’s revenue is derived from skilled nursing, which is highly dependent upon the Medicaid and Medicare programs.
Government Regulation
The company’s independent subsidiaries that provide healthcare services are subject to federal, state and local laws relating to, among other things, licensure, quality and adequacy of care, physical plant requirements, life safety, personnel and operating policies. In addition, these same subsidiaries are subject to federal and state laws that govern billing and reimbursement, relationships with vendors, business relationships with physicians and workplace protection for healthcare staff. Such laws include (but are not limited to) the Anti-Kickback Statute (AKS), the federal False Claims Act (FCA), the Stark Law and state corporate practice of medicine statutes.
The company is also subject to federal and state laws that regulate financial arrangement by and between healthcare providers, such as the federal and state anti-kickback laws, the Stark laws, and various state anti-referral laws.
Health care providers are also subject to laws and regulations enacted to protect the confidentiality of patient health information and patients' right to access such information. For example, HHS has issued rules pursuant to HIPAA, including the Health Information Technology for Economic and Clinical Health (HITECH) Act, which governs the company’s use and disclosure of protected health information of patients. The company and its independent subsidiaries have established policies and procedures to comply with HIPAA privacy and security requirements and the company’s independent subsidiaries have adopted and implemented HIPAA compliance plans, which comply with the HIPAA privacy and security regulations, which impose significant costs for ongoing compliance activities.
The company’s independent subsidiaries are also subject to any federal or state privacy-related laws that are more restrictive than the privacy regulations issued under HIPAA.
The company’s independent subsidiaries must also comply with the ADA, and similar state and local laws to the extent that the facilities are ‘public accommodations’ as defined in those laws.
Growth Strategy
The company’s strategies are to increase mix of high acuity patients; focus on organic growth; and add new facilities and expand existing facilities.
An important part of the company’s business strategy is to continue to expand and diversify the company’s real estate portfolio through accretive acquisition and investment opportunities in healthcare properties. The company’s execution of this strategy hinges on the company’s ability to successfully identify, secure and consummate beneficial transactions.
History
The Ensign Group, Inc. was founded in 1999. The company was incorporated in 1999 in Delaware.