The Pennant Group, Inc. reported significant financial growth for the fiscal year ending December 31, 2024, with total revenue reaching $695.2 million, a 27.6% increase from $544.9 million in 2023. The company's net income also rose to $24.3 million, or $0.70 per diluted share, compared to $13.9 million, or $0.44 per diluted share, in the previous year. This growth was driven by a combination of organic growth in existing operations and revenue from acquisitions, which contributed $91.1 million to the total revenue increase.
In terms of operational metrics, the company saw a 37.3% increase in total home health admissions, totaling 59,741, and a 25.3% rise in total hospice admissions, reaching 12,208. The average Medicare revenue per completed 60-day home health episode increased by 6.0% to $3,677. The senior living segment also experienced growth, with revenue increasing by 16.8% to $175.8 million, supported by a slight rise in occupancy rates to 78.8% and an 8.3% increase in average monthly revenue per occupied unit.
Strategically, Pennant expanded its operations by acquiring eight home health agencies, three hospice agencies, and six senior living communities during 2024. The company also entered into a joint venture with John Muir Health, acquiring a 60% controlling interest in a home health agency. These acquisitions are part of Pennant's strategy to enhance its service offerings and expand its market presence in the fragmented healthcare sector.
As of December 31, 2024, Pennant operated 123 home health and hospice agencies and 57 senior living communities across 13 states. The company employed approximately 7,000 individuals, with payroll-related expenses accounting for 67.7% of total expenses. The company’s diversified revenue streams included 48.3% from Medicare, 13.2% from Medicaid, and 25.2% from private pay sources, providing a stable financial foundation amid changing market conditions.
Looking ahead, Pennant Group aims to continue its growth trajectory by pursuing additional acquisitions and expanding its existing operations. The company is well-positioned to capitalize on the increasing demand for home health and hospice services driven by an aging population and a shift towards value-based care models. However, it remains vigilant regarding potential regulatory changes and reimbursement pressures that could impact its operations and financial performance.
About Pennant Group, Inc.
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