The Ensign Group to acquire nine skilled nursing, assisted living facilities from Careage

The Ensign Group, Inc. (NASDAQ: ENSG) announced today that Ensign operating subsidiaries have agreed to acquire nine skilled nursing and assisted living facilities from Sioux City, Iowa-based Careage Management, LLC. The acquisition is expected to become effective in July, 2011.

The nine long-term care facilities are located in West Bend, Cherokee, Hawarden, Fort Dodge and Clarion, Iowa, and in Beatrice, Falls City, Randolph and Wayne, Nebraska.  The facilities have 549 skilled nursing beds and 72 assisted living units. The pending transaction also includes Careage Home Care, a home health agency based in Cherokee, Iowa.

Dan Myers, Careage President and CEO, said that Careage contemplated offers from various suitors before settling on The Ensign Group. "Having had the opportunity to tour several Ensign facilities and visit with their staff and residents, we determined that Ensign best shares our philosophy of resident-centered care and providing a loving, dignified, home-like environment within the communities we serve," said Myers.  

Careage co-owner Greg Grupp noted that Ann Myers, head of Careage nursing and quality assurance, and Dan Myers  have created a long-term care model whereby resident dignity, care and choice became the hallmarks of Careage. "You will not find two more compassionate leaders in the long-term care industry than Dan and Ann. They raised the bar and caregivers throughout the Careage organization delivered," said Grupp. The Myers will remain with the incoming Ensign operators for an indefinite period to ensure a smooth transition.

"We are anxious to build on Careage's outstanding reputation for resident care and patient outcomes," said Mike Dalton, President of Bandera Healthcare, Inc., the Ensign subsidiary overseeing the transition. "We admire the great work done by the Careage owners and the incredible Careage staff, and we look forward to working with them as we strive to strengthen partnerships with families and residents to provide quality care." He added that Ensign expects the Careage operations to be accretive to Ensign's consolidated earnings in 2011.