Industry News • March 1, 2020
The Pennant Group Inc. (Nasdaq: PNTG) announced that a subsidiary of Cornerstone Healthcare Inc. — its home health and hospice portfolio company — has agreed to form a home health joint venture with San Diego-based Scripps Health, a nonprofit health system.
The deal is expected to be finalized in the third quarter of 2020.
The Pennant Group is a holding company of independent subsidiaries that provide services to 64 home health and hospice agencies, plus 52 senior living communities. The company operates across 13 states.
A spinoff of The Ensign Group (Nasdaq: ENSG), Pennant itself officially went public on Oct. 1, 2019, with great aspirations of forthcoming home health expansion in mind.
“We are thrilled to partner with Scripps to expand our collective capabilities to provide exceptional home health services to the residents of San Diego,” Daniel Walker, Pennant’s president and CEO, said in a statement. “As the post-acute landscape continues to shift and we see a stronger trend toward value-based payment reimbursement models, it is critical that we work closely with integrated health systems like Scripps to help patients and their families navigate the various care settings in the post-acute care continuum.”
The joint venture will be managed by a Cornerstone affiliate, which will help launch the partnership and eventually provide home health services to patients in San Diego.
In January, Pennant announced Cornerstone’s acquisition of the Clark County, Nevada-based Desert View Home Health, which became Comfort Home Health and Hospice.
“As health care continues to change nationally and in San Diego, we believe home care and monitoring will play an even greater role in our patients’ overall care,” Chris Van Gorder, president and CEO of Scripps Health, said in a statement.
This article originally appeared in an article in Home Health Care News.