The Ensign Group Acquires La Jolla Skilled Nursing Facility

LA JOLLA, Calif., Oct. 6, 2011 /PRNewswire/ -- The Ensign Group, Inc. (NASDAQ: ENSG), the parent company of the Ensign™ group of skilled nursing, rehabilitative care services, hospice care and assisted living companies, announced today that it has acquired The Springs at Pacific Regent La Jolla, a 59-bed Medicare-only skilled nursing facility located in San Diego's prestigious Village of La Jolla. The asset acquisition was effective October 1, 2011.

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"This is a strategic acquisition that adds to our growing portfolio in the important San Diego County market," said Covey Christensen, President of Ensign's Southern California-based Flagstone Group, a subsidiary of which will operate The Springs. "We are especially pleased to be joining La Jolla's vibrant and well-regarded healthcare community," he added.

Ed McCarthy, Executive Director of The Springs noted that the facility is a private pay, Medicare and managed care-only facility. "The Springs provides a distinctive set of health and rehabilitation services to a unique patient population in a destination medical community," he said, adding that the acquisition will allow The Springs and its sister facilities to collectively serve a broader segment of San Diego County's post-acute care needs.

The Springs at Pacific Regent La Jolla is part of a larger retirement community that includes Pacific Regent Tower, an upscale 21-story 55+ independent living condominium project. The acquisition included an undeveloped one-acre parcel adjacent to the facility that has received conditional approval for a second 21-story residential tower. Mr. Christensen indicated that Ensign is carefully considering alternatives for the eventual development of the parcel, noting that it is located in a highly desirable market with a limited supply of developable real estate.

The well-performing multi-story skilled nursing facility had an occupancy rate of approximately 72% at acquisition, and is expected to be operationally accretive to earnings in 2011. An Ensign holding subsidiary purchased The Springs with cash.

Ensign management confirmed that the company is actively seeking additional opportunities to acquire both well-performing and struggling long-term care operations across the United States. The acquisition brings Ensign's growing portfolio to 100 healthcare facilities, three hospice companies and three home health businesses in 10 states.

About Ensign™

The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and assisted living services, physical, occupational and speech therapies, home health and hospice services, and other rehabilitative and healthcare services for both long-term residents and short-stay rehabilitation patients at 100 facilities, three hospice companies and three home health businesses in California, Arizona, Texas, Washington, Utah, Idaho, Colorado, Nevada, Iowa and Nebraska. More information about Ensign is available at http://www.ensigngroup.net.

SOURCE The Ensign Group, Inc.

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