ENSG - Ensign Group: Quality Care For Your Portfolio

• The Ensign Group, Inc., a holding company with subsidiaries that provide skilled nursing and rehabilitative services, is poised for substantive value appreciation as the below theses materialize.
• COVID has decreased skilled nursing occupancy rates, resulting in a distressed facility landscape and several discounted acquisition opportunities for Ensign’s capital-rich, proven operating team.
• ACA repeal risk has reduced almost entirely, diminishing the primary threat to Ensign’s top line.
• With extreme market fragmentation across the SNF space and expected Genesis Healthcare bankruptcy, Ensign is positioned to realize significant consolidation opportunities and emerge as the top public SNF provider.
• The spin-off of The Pennant Group creates a pure-play skilled nursing facility operator, allowing management to focus on its core competencies in one service niche and reportable segment, Transitional and Skilled Services.
• Additionally, the company's reputation for clinical quality and effective virus containment will be a big selling point going forward, especially as the industry shifts to a value-based care reimbursement model.

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