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ACQUISITIONS
3 Months Ended
Mar. 31, 2020
Business Combinations [Abstract]  
ACQUISITIONS ACQUISITIONS
The Company’s acquisition focus is to purchase or lease operations that are complementary to the Company’s current businesses, accretive to the Company’s business or otherwise advance the Company’s strategy. The results of all the Company’s independent operating subsidiaries are included in the Financial Statements subsequent to the date of acquisition. Acquisitions are accounted for using the acquisition method of accounting.

2020 Acquisitions

During the three months ended March 31, 2020, the Company expanded its operations with the addition of one home health agency, one hospice agency, and one senior living community. In connection with the addition of the senior living community, the Company entered into a new long-term “triple-net” lease with a subsidiary of Ensign. The Company did not acquire any material assets or assume any material liabilities in connection with the acquisitions of the home health agency and hospice agency. The addition of these operations added a total of 164 operational senior living units to be operated by the Company’s independent operating subsidiaries. A subsidiary of the Company entered into a separate operations transfer agreement with the prior operator of each acquired operation as part of each transaction. The aggregate purchase price for these acquisitions was $2,968.

The fair value of assets for all acquisitions was concentrated in goodwill and as such, these transactions were classified as business combinations in accordance with ASC Topic 805, Business Combinations (“ASC 805”). The purchase price for the business combinations was $2,968, which mostly consisted of goodwill of $1,604 and indefinite-lived intangible assets of $1,363 related to Medicare and Medicaid licenses. The Company anticipates that the majority of total goodwill recognized will be fully deductible for tax purposes. There were no acquisition costs related to the business combinations during the three months ended March 31, 2020.
During the quarter the Company entered into a definitive agreement to form a home health joint venture with Scripps Health, a leading nonprofit integrated health system based in San Diego, California. The finalization of the joint venture is subject to customary closing conditions and is expected to occur in the third quarter of 2020.
2019 Acquisitions

During the three months ended March 31, 2019, the Company expanded its operations with the addition of one home health agency and one hospice agency. The Company did not acquire any material assets or assume any material liabilities in connection with the acquisitions of the home health agency and hospice agency. A subsidiary of the Company entered into a separate operations transfer agreement with the prior operator of each acquired operation as part of each transaction.

The fair value of assets for all home health, hospice and home care acquisitions was concentrated in goodwill and as such, these transactions were classified as business combinations in accordance with ASC 805. The purchase price for the business combinations was $1,500, which mostly consisted of goodwill of $1,154 and indefinite-lived intangible assets of $346 related to Medicare and Medicaid licenses. The majority of total goodwill recognized is fully deductible for tax purposes. There were no acquisition costs related to the business combinations of home health, hospice, and home care during the three months ended March 31, 2019.

Subsequent Events

The Company expects to close an acquisition in two phases consisting of three affiliated hospice agencies with a significant footprint in Arizona and southern Nevada. The first phase of closing, which consists of two agencies that bolster our operations in Phoenix and expand our geographic offering in northern Arizona, is expected to close on May 16, 2020, while the second phase of closing consists of a hospice agency in Las Vegas, Nevada, which we expect to close on or before July 1 subject to standard closing conditions.