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Pennant Group late Tuesday announced a shake-up of its management team that consists of a reassignment for the company’s CFO and the exit of its chief investment officer. 

The Eagle, ID-based home health, hospice and senior living company said current CFO Jennifer Freeman will act as Pennant Group’s interim CFO as the company searches for her replacement. She will be reassigned to another leadership position within the firm once a new chief financial officer is named. 

Freeman has headed Pennant Group’s finance team since it was spun off from former parent company Ensign Group in 2019. CEO Brent Guerisoli indicated the company is searching for a CFO candidate with a deeper skill set in a statement on the company’s website.

“As we chart the course for Pennant’s future and continue our growth story, we are focused on investing in our leadership in the field and Service Center,” Guerisoli said. “As part of this effort, we are excited to add strength to our leadership team and deep bench of finance and accounting talent by adding a CFO with unique experience and perspective who will build on our solid foundation and help drive Pennant’s growth.” 

The company also announced the resignation of Chief Investment Officer Derek Bunker effective Dec. 31. Bunker also served as executive vice president and corporate secretary for the firm. 

The management reorganization comes one week after Pennant Group reported a solid third quarter that still disappointed Wall Street forecasters. The company earned $0.14 per adjusted diluted share in the quarter on revenues of $118.3 million. That was $0.04 short of the $0.18 analysts had forecast. 

Pennant Group executives told analysts in an earnings call it expects to see a $1 million hit to Medicare revenues in 2023 due to a behavioral cut included in the final home health rule. Despite that, they said the firm will be on the lookout for potential acquisitions in home health next year.

Pennant Group provides home health and hospice services in more than a dozen states located primarily in the West.