Pennant Group executives told analysts during an earnings call Friday that stubbornly high turnover remains a headwind in its efforts to return to pre-pandemic admissions in its home health and hospice units.
“Our turnover results have not measured up to the high standards we have set for ourselves,” Pennant Group President and COO John Gochnour told Wall Street analysts during the call.
However, Gochnour added the company is making some headway in reducing turnover. “In the fourth quarter and into the month of January we have seen signs of improvement in our labor trends. Wage inflation slowed, clinical headcount increased and home health and hospice turnover has declined.”
Eagle-ID-based Pennant Group’s strong fourth quarter and 2022 performance indicated the company is on an upward trajectory for 2023. On Thursday, the company reported earnings of $0.18 a share in the fourth quarter on $127.4 million in revenues compared to $0.07 a share on revenues of $111.8 million during the same period last year. Pennant Group earned $0.57 a share on revenues of $473 million for 2022 compared to $0.46 a share on $439 million in revenues in 2021.
The company said home health admissions increased by 8.2% in both the final quarter and full year of 2022. Hospice admissions for the fourth quarter and full year expanded by 6.4% and 2.% respectively. While hospice daily census was up only a scant 0.2% for the full year, it gained some traction in the fourth quarter of 2022, increasing 5.2%. Gochnour said Pennant Group would try to leverage its strong partnerships with senior living and skilled nursing facilities to help improve hospice admissions and census in the months ahead.
Pennant Group operates in 14 states, primarily in the West. The company operates home care, home health, hospice and senior living facilities.
