Earnings call transcript Q2 2023

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Operator

Good day, and thank you for standing by and welcome to Ensign Group Incorporated Second Quarter Fiscal Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Chad Keetch, Chief Investment Officer. ahead. go Please

Chad Keetch

and operator, Thank welcome you, everyone.

also our it and filed at pm A call Pacific release until August our of yesterday, available on ensigngroup.net. will this of XXXX. press on is replay available the X website on website We our earnings be XX, have Investor Friday, section as replay call that statements all We want that been listeners and this any not July may be XXXX, made be of to are of will to remind listening today, XX, to updated a call. today's nor statements these subsequent Relations

forward-looking and today our on reliance current business forward-looking any not that actual our uncertainties are we materially based about expectations, environment should place the undue on statements in which could from implied cause Also, management's or statements to those made expressed and operate. and today's results beliefs risks assumptions differ on Listeners to and call. These are subject statements SEC a future and or its changing Except forward-looking not our federal changes circumstances any Ensign as reason. laws, review results. a where to to any of as publicly securities result undertake filings for arise required our statements, discussion encouraged more of affiliates information, that impact other for revise are by could factors new update complete or do events,

subsidiaries to owned with resources, operating no Ensign the In services information wholly a collectively assets, subsidiaries, risk operating direct through management with accounting, such or contractual to subsidiaries. Inc. payroll, employees Center, addition, and Certain as company technology, provide human Group, our independent The holding the relationships other referred revenues. of is other legal, Service

Captive, as claims as well subsidiary, owned to referred liabilities. provides our for coverage as general addition, insurance to liability, captive the wholly which workers' for insurance professional companies operating In compensation certain and were made our Insurance

are agreements which healthcare REIT, with Ensign, Standard and enters owns also Healthcare invests lease in consolidated Group. real into Inc., as Bearer and Ensign subsidiaries The as third with Group, of properties our, trust the refer Ensign, Ensign investment captive its tenants that subsidiaries. the is well us words Inc., unaffiliated to certain and that we, a independent Ensign estate company, party

operating Captive, subsidiaries, and assets. operated wholly Bearer owned by All Standard and companies Healthcare their employees of REIT, Service the the own Center, are our independent that have Insurance management separate,

our, today as of the should may the Ensign and we and assets to has of meaning activities or herein construed Group. use operated References as assets, meant its us, as the it consolidated or are be and that operating Ensign nor that imply, terms by use company the are words to revenue, Group any well not similar we employees, the subsidiaries direct

XX-Q. believe a press GAAP Also, they GAAP be should with we of exclusion provide is Form we supplement complete A in to GAAP with together to results, the viewed available these release non-GAAP understanding can is not our relied our non-GAAP GAAP of more measures When our metrics. and reports. reporting reconciliation in that available yesterday's business, our but upon

with turn I'll Barry? that, CEO. our over Port, call And the Barry to

Barry Port

you thank today. us Thanks, Chad, everyone and for joining

even We their continues are and clinical teams leaders achieved record results with this environment quarter financial our and present challenges. as we to very happy reported the results, excellent the local when operating

and of days, persistent return the improvement market pressures impressive is continued saw we labor quarter, in typical skilled seasonality. particularly managed which care the given revenues, occupancy, During revenue, skilled more and

quarter, in the typical report, which the As we saw in seasonal factors is second patient we summer in flow. admissions as anticipated fewer months our impact last

was the over as the of year store increase same end the occupancy performance which quarter, quarter. prior our occupancy X.XX% However, with an XX.X% of remains of strong of

store to as occupancy reach that higher confident are we are into admission pre-COVID months move a path winter. fall same of of we eventually and XX.X% our on We and the exceed

as we of mix addition, portfolio us than labor across organic and drive to drive as and There improve to to we transition our front may do occupancy many growth seen much are we potential acquired never skilled successfully in operations. XX so have continue opportunities In recently right now.

the excited field are see market practices very We they to Service Center share respond challenges. best local as and our partners and apply labor to significant

less seen our instill agencies, again third-party nursing we into June will have XXth. the lower second turnover as they a As to month six and operation, for which culture of improved and each see usage continue in row customer of

same a way opportunities market. the ability each skilled also our unique serves best to We in growth care see for that store enhancing in occupancy in enormous patients healthcare

skilled During our and grew quarter. by operations mix same X.X% quarter, year and days mix the store X.X%, prior revenue respectively, skilled over the

We partners care, build of capabilities, coordination to also continue relationships stronger to increased our managed strong with better care the clinical outcomes. due and

revenue, and care As managed increased the transitioning over combined managed by census a prior result, and store we XX.X%, care quarter X.X% same year. and in volume increased during which saw respectively, our the

see elevated, pre-COVID last skilled just how showing levels, both compared continue revenue mix high important when of continuum care. for that are As post-acute the and to to indicated we we within quality quarter, our services census remains

our to operations. demonstrate improve our to transition We ability recently find, acquired continue and

transformations deals. how The our record see operations where acquisition to complex our unless expect throughout in difficult approach with local have we each to and sometimes But continue that encouraged both operations process seen emphasize it under clinical it's demonstrated describe so through varies to successfully this we’ve every history, for our smaller and we larger is shines. remarkable the operation really building-by-building, new a worry transitioning results are much achieve to you so Because we close-up. each these truly financial and transition are. to goes a ability We improve is track and

of to offerings Service With the the leadership each clinical aspect of implement expense demands, their Center empowered every management. cluster team local operation support to experts, is and and changes down

diverse results a in we locations, all operations period these improving relatively of grow. see of of and set we we are short that it when shows So, each in time, across these many time learning

the some results on occupancy face to the growth continue many more to long-term year, typical operations pains the these pressures during these of future. as forward during summer to see transitional wait to contribute can't they mature, some some in our how expect many, we to that are we operations including near and but months, We them like and look

our XXXX occupancy earnings we diluted and per mix results. Due new of earnings to annual growth acquisitions, diluted is guidance as to strength and XXXX over recent an and increasing results our continued $X.XX and $X.XX are from from This per represents share. higher our than narrowing solid XXXX up increase our share, our $X.XX XX.X% well $X.XX XX.X% as between guidance of midpoint our XXXX skilled

We our between years. comes $X.XX increased billion. we billion to to annual of of last raising $X.XX enormous and revenue are billion $X.XX billion, guidance on $X.XX guidance also previous up This our growth few the guidance top in from experienced

growth in instead we performance some quarter-after-quarter principles. XXX% To Pennant that a EPS performance put seen we The This following single have XXXX, growth but as to events in compound of not this out performance Group or XX.X%. transaction consistent spun since and rate annual comes is by with due result perspective, adjusted of large a from proven a transformative grow Ensign

challenges to and all partners will front. the lingering manage upcoming and about the that excited are our innovate through the confident continue labor on year We

were these transition while of are talked of XX All made the the acquired to is recently helping many strength, relentless more operations. financial here. continued have them look following as the caregivers year our of focus results got by and us We the efforts and principles their clinical protecting during today forward remainder about of operational and even success all possible only leaders, we and our endurance that

additional Now, our some Chad recent growth. I'll insights Chad? ask to provide regarding

Chad Keetch

Ensign's to much you, After to our quarter, Thank as many couldn’t and new work we they time acquired of some cases as teams our of adopt took contributing within new more existing potential operations ahead already to together all are XX about our our schedule. to continue XX growth last the excited Barry. organic needed operations principles. cultural in results, portfolio, newly be with continue our acquisitions adding We

skilled of acquired and was the expansions respectively, in recently bucket for result first operations As a for the occupancy skilled the of XX%, nursing the and half in skilled XX.X% services days mix quarter. XXXX,

For starting point impressive those a that which have from been following is us for build. very years note, will to this

continue However, to store in same transform and enormous when they our same XX.X% days these store compared to occupancy skilled of and into is XX.X%, there as operations of operations. caliber each mixed respectively, upside

very been steady in fall nursing in clinical have well expect as health we end been near and As the we year. of the we new the and we expect the for as handful more difficult the and we poor of future. high summer deals, have acquisitions down in the everything nursing to to new a announce arise the and approach and on the utilization evaluate the very for of we has recently low years planned, financial past goes opportunities opportunities of pipeline horizon that The evidence skilled operators see party third occupancy the agencies, The of facilities several assuming are we acquired. and over road few

of we expect arise. that result, there will a still that lots As be will opportunities

in acquisition growing you, to as we have when growth only set always goals right arbitrary leaders pricing we’ll we true place right. and do is the remain remind the However, not we discipline and our strategy,

local to We take of states gain the and at continue opportunities before, we've look the can entering said new is time but to new challenging states, as often trust community. healthcare in

hope states. in on within always to highest to With the South said, footprint enjoy place existing Carolina, will we build we Ensign’s that to able southern nearby we in the opportunities success, growth our we'll continue priority be That footprint. continue

then in to offerings for As acquisition give and operate already years. we've markets been our in targets, prioritize that and exposure us those we states in, markets new enhance we or our carefully we select service

several steady to real operations. opportunities Standard would Bearer affiliated with a continues in deal potentially investment that tenants trust to evaluate for include leases addition flow Our Ensign estate of providing unaffiliated opportunities

transaction In coming just weeks. fact, such we announce expect a the to in

also want we dilute very However, portfolio to of current name you of diversification. to being our that health are in careful we the not remind the

that focused the the that have led leadership ensuring team ensure will to transactions we desks, purchase operation that and fundamental result price a fantastic first both principles payment term. near in the a and has long healthy success, are Ensign’s a potential operator the will that rent over As on our including cross

the are billion-dollar to of in and for are to We committed our diversify principles we've just spent sake growth. no that those building years hurry portfolio

produced assets, revenue $XX.X which $XX.X of million operations. of million quarter, As of Bearer Also owned an rent the affiliated EBITDAR Standard the generated coverage end and comprised derived the FFO of ratio was $XX.X is Bearer, Ensign to quarter, times. have in of of for which quarter, the rental XXX for million Standard from X.X

to with will operations. call our around color that, turn I And our the add Spencer, COO Spencer? more to

Spencer Burton

everyone. you, and Thank Chad, hello

and over that were months. Barry This last noted, represent now, of extremely just is Chad XX as absorbing we facilities As strategy. important an are right true particularly operational acquisitions our part XX acquired the

many than of average contributions these been their multi-year the following are we've financially. and facilities to see acquisitions are While pleased that typical process some recent reach quicker potential, new to our making, of clinically turnaround the

Director, One This a Rehab Devera. Despite Nursing, at succeed Director in data to as and embraced nursing Randy the history model, prior truly and success, reputation help Jennibeth as affiliated Fairmont part and well good in to and that operations leadership had center sophisticated community Jennibeth great example cluster prior Executive organization Thanks day-to-day is skilled Lodi, to tools provides the the Hospital, Tu XX-bed this of the Randy in their transition. the of located of rehab longtime of fundamentals. our California.

the over past meaningful already result, EBIT a the months, team contribution. Fairmount a As made has five

overall a third-party health while measures. X for nursing and reduced nursing revenues, labor X mix, expenses, star In addition, quality simultaneously rating overall growing while a as skilled successfully eliminated maintaining well star occupancy, they've and and all as CMS inspections this rating, agencies

in acquired greatest that improvement we in that X Longview’s It However, store Amanda been CMS CEO, focus choice. consistent example to overlook excitement led this year-over-year able skilled operations. transitions, our straight Beacon Longview, Hill COO, after the and important contributor years was located don't is of achieve XX-bed of while success, Washington. has to with new same our as and One five ongoing exceptional Rehabilitation, surrounds rated financial it's operation improvement XXXX, serving Steve of and This is star Ogden. transitioning Ross in by facility the

to the then is in market XX their labor. state The this affiliated ideas result pushed Xst Beacon even used quarter ahead Washington single second just year same. leadership the reached in Despite half impressive none how even market. other year of share and the year, One revenues focusing of Beacon performance, results their years of led more agencies trending and on year. the improve team Hill other of to More own April do cluster particularly third-party the of agency own to of of has found success nursing example XX% that model quarter, high though, the prior has since the facilities impressive year-to-date, Washington shift grew is reliance the XXXX, late at the the ways on the a facilities compared their and by first of to than is through last of the in Beacon to XX facilities in XX% nursing out EBIT eliminated the in this Hill

are there the two than newly and record mix can hope of to that to today's store continue even allowed results, stories challenging success environment. demonstrate possibly same that acquired more achieve examples have us shared, in we While be incredible synergistic these contributions

more the I'll up time to Suzanne? then And financial Suzanne and our performance the that, turn Company's with on guidance. to open questions. detail And we'll over some for provide

Suzanne Snapper

Spencer, you, everyone. morning, Thank good and

release the for and filed in XX-Q press are quarter financials Detailed our contained yesterday.

Some highlights for the quarter following. include additional the

increase line was and XX.X%. cash million of on GAAP flow an XX.X%. XX.X%. an net $XXX.X $XX share Other June increase equivalents $XXX.X $XXX income of million, GAAP both availability operations net adjusted of metrics diluted key per million, XXXX was increase earnings diluted $XXX of include from income adjusted an per And a increase of million, revolving revenues GAAP credit. $X.XX, an million, $X.XX, of earnings XX.X%. $XX.X Consolidated share were XX.X%. and an of and was as of our of XX, cash revenues million, of increase cash was Adjusted

a paid During of the quarter, share. $X.XXXX we quarterly dividend per cash

decrease also delevered portfolio last achieving X growth ratio and particularly times, lease last of taken impressive our the of the amount year year. from over we a given on of is We have net adjusted debt-to-EBITDA X.XX times is which

the no updates anticipated staffing have minimum the we today, of As on federal rule. from federal government

the to clarity to Starting However, X.X%. the year, on At the have Medicare level, since reimbursement we net to we some states some have of continued public of to rate that state remainder already the our that receive increase federal linked in healthy October the by last news in a most in provided about health quarter, operate good offset adjusted extra the this reimbursement ended of emergency their the reimbursement May. we has year. of expect

on focus to For as environment fundamentals. costs, the changes like of example, we labor, to slowing rate will some states combination generate positive continue a our their relentlessly key add operational of some to biggest rates. inflation encouraging Texas a and we of momentum in The announced including

we annual share, from $X.XX earnings per our to up share. mentioned, guidance to are to per Barry As diluted diluted XXXX $X.XX increasing between $X.XX $X.XX narrowing and

also raising billion guidance are between to We $X.XX revenue and annual $X.XX our billion.

guidance. based multiple meet strength managed we scenarios, We our and seen skilled that in and in some strength have are can mix momentum the performance as this operations and the programs, and well we Medicaid positive we've additional confident as evaluated care strong in on

million, the stock-based rates provider is XX%, guidance the a acquisitions Medicaid exclusion and coming the shares and XXXX of tax, compensation. average approximately Our of XXXX, weighted tax based closed Medicare management's outstanding inclusion net primary from on of for in common with of expectations of diluted reimbursement inclusion $XX.X rate

changes general mix, delays seasonality variations and return systems, census of factors that could short-term factors. variations impact other of the staffing, in include occupancy and of Additionally, in performance influence accruals activities, and quarterly impact skilled the the state budgets, reinsurance in in other reimbursement and acquisition economy,

turn And Barry? over I'll to with that, it back Barry.

Barry Port

Suzanne. Thanks,

facility clinical results. members, are our we behind resources, these center wrap for that to As partners field and team important incredible acknowledge us it's up, always service team record-setting leaders,

honored emphasize of own. amazed partners we one to ways. our Their reflect their and commitment innovative We're as from continue every has on new challenges grateful As them. enough these including and they focus we alongside -- impressive another cease be the are many, on future partners. direction, I amazing the our in blessed incredibly almost to each by can't how we so never supporting face we can't lives our work excited about really of to because resiliency of

have and We them they faith built. the in have culture complete collectively

Q&A can the now call. We'll Q&A our please on portion the audience you turn of operator, procedure? to the instruct And over

Operator

of first with Our comes you. Instructions] [Operator Thank line question Fidel Stephens. the from Scott

now Your is open. line

Scott Fidel

Thanks Hi. everyone. Good Great. afternoon.

particular question, the margins of walk thought the you back on up the would for how unusual second the you well North acquisition I see if expectation your half First continued through there how setting size American then in has half can us the in the proceeding just the you performance maybe helpful integration portfolio, portfolio as year? given be with relative it how been that been and to and the have trending of in that

Barry Port

Yes. we things to the unique to cultural they not important that making that that important learn question. I we've our part vision that have the we, larger it's really values the been, feel to with of and become we that Any number hope helpful our principles been certainly an they're and end. take think, they I done obviously and operational together. of time integration see appreciate organization, we been do of get It's right. this this like what make worry one, transition understand sure an sure feel partners only portfolio some but and it's core And culturally No, new ours focus these and first and of that facilities foremost -- a -- about

Our and changes ahead nuances them needing the time, learn North able early to of again, to early partners these to get leaders were the kind were access spend and appreciate help American to of to really the them have they in things and that and transition expect.

combined with efficiently we of really helpful to much That, more lot expected. that transition better proved of be much, this and go really put kind operational some in helping transitional of all any and think kind a place, I new in go than tools us things

that's all some with one they doing we that some improve cohort that including effective. vast first But more overcome lower each California to and great been where where with adjustments those and at point margins to operations, -- especially the were amount that an other a expected of still, profitability already clinical place, to lot be a years have all really contributing the there's they operationally, to we done there of really majority high happen quicker been compared operation that the but leaders on with tremendous and agency many occupancy, path our quickly. the much a these news when buildings lot towards some existing to good and upfront continue obstacles many, hurdles buildings of they're in were while their to We've how experience. in operational So, a bigger of need is and of had each amazing in -- than upside yet viability those now. have the leaders that's We're transition were really anywhere of needed certainly a has operations be nursing other to seen not been those were these impact the

and of our and and around states really experience leaders great leaders partners them, one for American in formula and has success proved good that be effective clinical have -- they're to buildings California clusters And important North stronger these one so operational part helping an in you is like of organization. come of along these our leaders, leadership around feel our a when with of Ensign combined it's great great

Scott Fidel

question, just to a Great. wanted EBITDA that. the bit. My second just Appreciate drill Okay. margins into

when on we first we look the and within of XX.X% lot of of you pieces you that without that later although on wind to of and in XX.X% guess, minimum you're the would if adjusted on, American of down the so I bit, sort think rate basis. guidance, at look would be until And effect know have half we're you've the year, the the in still and these talked a I about from in some about you we think terms in also as as an seems half year, back but the to the the you've the out North staffing the increases moving quarter highlighted quarterly slope margins third quarter getting. provide Clearly, don't -- FMAP to of, starting waiting at fourth rule, How sort of about of different seasonality in the to the some the on obviously, and second here normal and then property, quarter quarter how business well. a first integrating came returned

Suzanne Snapper

Yes. I'll Barry the start fill and then gaps in can there.

history and think QX is and I just looking right, be quarter. at our so looking weaker. tend QX strongest QX our where seasonality to is, historically, at And

see the but think kind a seasonality COVID, -- end have that as -- into we we and at coming end experience ramping seasonality of and back of expect it the the saw I same little do year towards June, in of seasonality we're some this post-COVID bit effect. in during to coming towards that We didn't of times.

relative QX. had And margins in so, better -- quarter to always always fourth the we've

a about. to a dynamics have got talking happening we acquisition regards North other in of the things American that Barry numbers, that are of With couple the did just

that leases. in at have acquisitions acquisitions. so newer with we're rent think making the those an looking I some been that just think EBITDA I of we're lot A an sure associated number full of calculation EBITDAR And versus taking number, newer

from we're I think quarter-over-quarter you and can the looking EBITDAR, that consistent going so, And see at pretty there.

I So, that think that’s...

Barry Port

Yes.

mix seen make continue maybe we some the front. great seen, agency is I end think in care then our really some said down much partners. We've We margin we for as a in pre-COVID, a for than expansion we things full just -- we stated managed our obviously, was quarters remarks, a year X X opportunity. relationships row, optimism see to with and as is continued in progress the skilled continue about months our it that great we've go -- row. of stronger support And those to the have that probably numbers on towards our

leaders offerings have have more acuity at quality the more field to and and acuity service they able services scale. to Our become and rise patients be continue -- adept up that to high ensuring high attract of those kinds of kind

the And when so, see obviously, in year end mix -- patients. growth towards sicker the is of growth we and skilled more

lead think And prove will I kind higher the end margins towards the of a two -- year. combined those towards so, to of bit little factors

Scott Fidel

just I ask more if And one question. understood. Okay, could

Just significant sort of where I you're that. I see of rule, two is, guess, content how quite I the here the to then the of with a discussions for from on has either or waiting from then staffing final backdrop M&A the first to everyone anything sort on a minimum and that's just this, you visibility or factor have has it perspective then at been the period about that things there, is or that. ahead the want adjust, something for was that of wondering obviously necessary? really been, is what do there which of have just see to looking finally rule proposal proactively to guess, into lot. time of you is the is operations discussions? And And that terms for gating look -- not much, I M&A it you that guys potential me. sellers or as of as Thanks and for the in that wanting

Barry Port

Addressing headwind part of factor how of interesting the last some tend kind first. any It's potentiality effect. sellers of question that that a has to any ignore

funny that something, us are seeing you seeing. we're always that's So, to not

ahead with rule you not we time want DC much what proposed around that they there's meet release and that very so. think on a said, We've folks our we're to I visiting with letter and lot would to will federal is government We're that a staffing any don't yes, association. to active And at don't will to reacting also employer with can that relations their coming. be our tell the So -- doing, providing on request spent both us doing with, front. be can been month the engage aggressive say, campaign or we making I know -- what but for We comments and behind What pretty association it focused writing will feedback. rule we have of the another of on really we know. We best is continue proposed be. staffing. out But probably organizationally we're sure we be and

best practices how on our We exceptional are that the want sharing last we an healthcare around place where workers focus hope be. for have retention had to improve and the believe deeply make principles intense in the X.X-year to make sure we're us our our we on that being employer culture of efforts that choice to

challenge be principles have employees challenges of been like to a want we really industry, at times in of address to and by we're, just with it, the there is federal place but can we'll bigger best post the have and our I path really continue We're put a on with -- lot that Whenever that. organization or this before. just programs cultural line of with that's And we if for for things the federal an attracting better. having in staffing to. to lead deal in any other to other these us us Ensign forward rule been it headwind for looking do spotlight attract will put absent continue it, all as And to way our will being help staffing and and practices has will was in have new discussion and think a necessarily us built been we so, it. what labor and turnover not I And around minimum developing is, rule able talent nature adapt, our think minimum have Those orientation be place, that and and schools will a talent. to around and

-- pretty that other the many, there's even final, last becomes be rule make it I'll about take going months. that So, will to is comment around rule looks like long period out, before what when that, the comes Scott, many a comment that

of So going it time is And rule, year. federal there's clarity, lead the that next as some thing could as you as lead be implementation a us bit a it change to longer of we've probably the certainly one the staffing I that little giving been far imagine. will into think the now could

So, try much conjecture. not know. too this spend we what it, all but is again, to We that's on time

Chad Keetch

minimum of add certainly now, I'll pro Scott. Barry generate part create staffing market second saying, opportunity enormous "Hey, mean in deals I was as the there, that think your let's us. for an into will build some I that saying, for the some we're amount in that our Certainly, said, brokers sellers seeing of to just question and But sure. the all that formas will disruption are

lots we that of reflective do is same, and the the are which opportunity And run, will reality. growth remain prices that will have have that, continue strategy to that. to that Our to engine we'll pay as confident we however, do of

Operator

comes question next RBC Ben Markets. Capital line of Hendrix with our And from the

Your line is open. now

Ben Hendrix

question EBITDAR. guidance. quick the commentary on about A the guys. I appreciate watching Thanks, Hey.

you could year. the the you the would expect us the of Thanks. And in give a rate to through end where you run expense ramp expect lease expense was So, on lease idea wondering half year back little I if on basis? a then,

Suzanne Snapper

Yes.

any date have in of at it. the base for of higher caps have right, we XQ, QX additional acquisitions has to lease acquisitions -- in amount and most about kind that than so a that part, didn't X%. and So leases our our our Most are --

probably so And at having already half number. still come in some expense of is in kind lease that about good to of it half a with to look way second come

Ben Hendrix

-- across trend of in one, in-home trending the seeing wondering you seeing you're where systems in in care may, Okay. Thank if markets. were I more see potential to that's you. particular, If get about and wondering from your healthcare with you health of adoption think And is. idea And health I one skilled strategy. to or home. system, kind an about we're that I'm a was I how discussions that just how of headlines

Barry Port

Yes. make one principal I think I that is have setting of comment that kind one any from think we or might mean, setting major would comment home shift home of setting kind of the I their percentage. to patients a patients current of setting extent is that about that eligible out Most or really, a it transition into getting our tiny as is as our -- that of to the on really capable possible. for they're our and focus quickly I

kind focused current at how think transition it. that group that San part with exploring things for look even Diego that our really, said, that in invested around groups some we the can strategies transition. make We've talking we're seeing market. in is with the looking this we be business. successful and and a partnered are of still on expand better But and are And there high-needs have synergies of group we I at really a different and future partnership with strategy can that we're to and I tiny think again, So, that high-risk, a partnerships a about population physician done can that that and recently and have

discussion And it hospice company remember, around lot I think while already there's out started that a And and health and any have major we a shifts of spun have happened. home taken eventually. this, place

But know market-by-market just of patient think any we really And don't business model massive strategies kind more in business well. there We home so, well. would the maybe future, -- our populations. I dynamics that we see for drastically high-risk are nuanced change setting the that know

Operator

Thank you. to Mr. this I'm remarks. currently at like showing Barry to no for further Port questions I'd closing back over the call turn time.

Barry Port

great we on you. call and And and everyone's appreciate year to look forward support Thank for the being a today.

Operator

for call. participation. you concludes This today's Thank conference your

day. wonderful You may have now Everyone, a disconnect.

The Ensign Group, Inc. (ENSG) 28 Jul 232023 Q2 Earnings call transcript