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ACQUISITIONS
 6 Months Ended
Jun. 30, 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 six months ended June 30, 2020, the Company expanded its operations with the addition of one home health agency, three hospice agencies, and two senior living communities. In connection with the addition of the senior living communities, 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 and hospice agencies. 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 $7,268.

The fair value of assets for acquisitions was mostly 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 $7,268, which consisted of equipment of $44, goodwill of $4,139, and indefinite-lived intangible assets of $3,166 related to Medicare and Medicaid licenses, net of other liabilities assumed of $81. The Company anticipates that the total goodwill recognized will be fully deductible for tax purposes. There were no acquisition costs that were non-capitalizable related to the business combinations during the six months ended June 30, 2020.
During the first 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 fourth quarter of 2020.
2019 Acquisitions

During the six months ended June 30, 2019, the Company expanded its operations with the addition of two home health agencies, four hospice agencies, two home care agencies 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 52 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 $14,779.

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 $14,759, which mostly consisted of goodwill of $11,500 and indefinite-lived intangible assets of $3,150 related to Medicare and Medicaid licenses. The majority of total goodwill recognized is fully deductible for tax purposes. There were $541 in non-capitalizable acquisition costs related to the business combinations of home health, hospice, and home care during the six months ended June 30, 2019.

Subsequent Events

On July 1, 2020, the Company closed on two affiliated home health agencies and two hospice agencies that expand the Company’s footprint in Northern Utah and Southeastern Idaho. The combined purchase of the home health and hospice agencies was $6,250. The Company has also signed a definitive agreement to acquire a hospice agency in Nevada, which the Company began managing on August 1, 2020. The purchase price of the hospice agency is $7,400, and the Company expects to close the transaction in 2020 subject to customary closing conditions.