Pennant Group, a home health, hospice and senior living company, lost $2.6 million in the second quarter of 2022 on slightly higher revenues.
CEO Brent Guerisoli noted in the earnings report that the company “is navigating ongoing operational headwinds and a challenging labor environment.”
He added, “As we face further economic and regulatory uncertainty, our unique operating model and leadership depth give us confidence in the abilities of our teams to be successful and create value for our long-term stakeholders.”
The company, which has 89 home health and hospice agencies and 49 senior living communities, earned $2.5 million in the 2021 second quarter. Revenues climbed by 5.4% in the second quarter this year. The company also posted a loss for the first six months of the year on 6.6% higher revenues. Revenue in the home health and hospice segment totaled $85.3 million in the 2022 second quarter, an increase of 9.3% compared to the 2021 second quarter.
Medicare home health admissions largely drove home health and hospice revenue, Guerisoli said in the report. Home health admissions grew by 6.3% in the quarter compared to the year before. Total hospice admissions increased by 3.5% compared to the prior year.
Guerisoli commented that the home health and hospice business delivered solid results “despite persistent labor and inflationary pressures.”
“We continue to see tremendous opportunities in our home health and hospice segment to drive stronger performance across our existing platform and expand our footprint by acquiring high-quality agencies in adjacent markets,” he added.
The company said in May that it is having ongoing discussions with potential sellers of home care and hospice agencies.
