Providence Group acquired Plum Healthcare, a large skilled nursing facility (SNF) and long-term care operator in California. The acquisition added 58 SNFs to the Providence Group portfolio. Financial terms were not disclosed. Most of Plum’s facility staff and the majority of leadership will continue in their roles.
The facilities include 57 nursing homes and one assisted living/independent living facility. Of the 58 facilities, 54 are located in California and four are in Nevada. The average census was at 83%. For 10 of the facilities, Providence Group also acquired the real estate.
With this acquisition, Providence’s subsidiaries operate more than 140 skilled nursing facilities in seven states, including California, Kentucky, Missouri, Nevada, Ohio, South Carolina and Texas. Providence Group’s subsidiary Providence Administrative Consulting Services (PACS), which contracts with facilities to provide “back office administrative support”, will do so for the Plum facilities. Providence intends to continue expanding via acquisitions, most of which are outside California.
The deal had been under review by the California Attorney General, which on September 21, 2021, announced a consent decree to address the potential anticompetitive effects of the merger. Both companies own SNFs throughout California, including two in rural Lake County. Following a joint investigation of the merger by the Federal Trade Commission (FTC) and the California Department of Justice’s Healthcare Rights and Access Section (HRA), the agencies determined that a consent decree with the companies would help prevent a SNF monopoly in the area. Under the terms of the agreement, Providence will sell one of its SNFs in Lakeport, a city in Lake County, as well as appoint a monitor to oversee the sale and safeguard consumer care in the facility.
This was reported by Skilled Nursing News on November 8, 2021.
Contact information: Jason Murray, FACHE, President and Chief Executive Officer, Providence Group, Inc., 140 N Union Ave., Ste 320, Farmington, UT 84025; (801) 447-9829; Website: http://providencegrouphc.com/
