PNTG Pennant Group Inc

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The Pennant Group, Inc. (herein referred to as “Pennant,” the “Company,” “it,” or “its”), is a holding company with no direct operating assets, employees or revenue. The Company, through its independent operating subsidiaries, provides healthcare services across the post-acute care continuum. As of June 30, 2024, the Company’s subsidiaries operated 117 home health, hospice and home care agencies and 54 senior living communities located in Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming.

Certain of the Company’s subsidiaries, collectively referred to as the Service Center, provide accounting, payroll, human resources, information technology, legal, risk management, and other services to the operations through contractual relationships. The Service Center also provides certain of these services to unaffiliated third parties under management agreements.

Each of the Company’s affiliated operations are operated by separate, independent subsidiaries that have their own management, employees and assets. References herein to the consolidated “Company” and “its” assets and activities are not meant to imply, nor should they be construed as meaning, that Pennant has direct operating assets, employees or revenue, or that any of the subsidiaries are operated by Pennant.

Basis of Presentation - The accompanying unaudited condensed consolidated financial statements of the Company (the “Interim Financial Statements”) reflect the Company’s financial position, results of operations, and cash flows of the business. The Interim Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the regulations of the Securities and Exchange Commission (“SEC”). Management believes that the Interim Financial Statements reflect, in all material respects, all adjustments which are of a normal and recurring nature necessary to present fairly the Company’s financial position, results of operations, and cash flows for the periods presented in conformity with GAAP. The results reported in these Interim Financial Statements are not necessarily indicative of results that may be expected for the entire year.

The Condensed Consolidated Balance Sheet as of December 31, 2023 is derived from the Company’s annual audited Consolidated Financial Statements for the fiscal year ended December 31, 2023, which should be read in conjunction with these Interim Financial Statements. Certain information in the accompanying footnote disclosures normally included in annual financial statements was condensed or omitted for the interim periods presented in accordance with GAAP.

All significant intercompany transactions and balances between the various legal entities comprising the Company have been eliminated in consolidation. The Company presents noncontrolling interests within the equity section of its Condensed Consolidated Balance Sheets and the amount of consolidated net income that is attributable to the Company and the noncontrolling interest in its Condensed Consolidated Statements of Income.

The Company consists of various limited liability companies and corporations established to operate home health, hospice, home care, and senior living operations. The Interim Financial Statements include the accounts of all entities controlled by the Company through its ownership of a majority voting interest.

Estimates and Assumptions - The preparation of the Interim Financial Statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Interim Financial Statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates in the Interim Financial Statements relate to self-insurance reserves, revenue recognition, and intangible assets and goodwill. Actual results could differ from those estimates.

State relief funding. The Company receives state relief funding through programs from various states, including healthcare relief funding under the American Rescue Plan Act (ARPA), and other state specific relief programs. The funding generally incorporates specific use requirements primarily for direct patient care including labor related expenses that are attributable to the COVID-19 pandemic or are associated with providing patient care.

These funds are recognized as a reduction of cost of services expenses when related expenses are incurred. As of June 30, 2024 and December 31, 2023, the Company had $1,162 and $780 in unapplied state relief funds, respectively. The unapplied state relief funds received are recorded in other accrued liabilities. The Company recognized state relief funding

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totaling $1,124 and $1,577 for the three and six months ended June 30, 2024, and $1,397 and $2,082 for the three and six months ended June 30, 2023, respectively, which the Company recognized as a reduction of cost of services expense.

Recent Accounting Pronouncements

Except for rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws and a limited number of grandfathered standards, the Financial Accounting Standards Board (“FASB”) ASC is the sole source of authoritative GAAP literature recognized by the FASB and applicable to the Company. For any new pronouncements announced, the Company considers whether the new pronouncements could alter previous generally accepted accounting principles and determines whether any new or modified principles will have a material impact on the Company's reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of the Company's financial management and certain standards are under consideration.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires the Company to expand the breadth and frequency of segment disclosures to include additional information about significant segment expenses, the chief operating decision maker and other items, and also requires the annual disclosures on an interim basis. This guidance is effective for annual periods beginning after December 15, 2023, which will be the Company's fiscal year 2024, with early adoption permitted. The Company is currently evaluating the impact of the ASU on its quarterly and annual reports.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires the Company to disclose disaggregated jurisdictional and categorical information for the tax rate reconciliation, income taxes paid and other income tax related amounts. This guidance is effective for annual periods beginning after December 15, 2024, which will be the Company's fiscal year 2025, with early adoption permitted. The Company doesn’t expect it to have any material impacts.

Pennant completed its separation from The Ensign Group, Inc. (“Ensign”) in 2019. Certain directors who serve on our Board of Directors also serve as directors of Ensign and own shares of Ensign common stock. Pennant and Ensign continue to partner in the provision of services along the healthcare continuum.

The Company incurred costs of $302 and $582 for the three and six months ended June 30, 2024, and $192 and $465 for the three and six months ended June 30, 2023, respectively, that related primarily to shared services at proximate operations.

Expenses related to room and board charges at Ensign skilled nursing facilities for hospice patients were $1,570 and $3,070 for the three and six months ended June 30, 2024, and $1,014 and $1,954 for the three and six months ended June 30, 2023, respectively, and are included in cost of services.

The Company’s independent operating subsidiaries leased 29 communities from subsidiaries of Ensign under a master lease arrangement as of both June 30, 2024 and June 30, 2023. See further discussion below at Note 13, Leases.

Basic net income per share is computed by dividing net income attributable to stockholders of the Company by the weighted average number of outstanding common shares for the period. The computation of diluted net income per share is similar to the computation of basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued.

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The following table sets forth the computation of basic and diluted net income per share for the periods presented:

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Numerator:
Net income attributable to The Pennant Group, Inc.			$	5,690					$	2,797					$	10,596					$	4,647
Denominator:
Weighted average shares outstanding for basic net income per share			30,142						29,809						30,094						29,780
Plus: assumed incremental shares from exercise of options and assumed conversion or vesting of restricted stock(a)			639						384						489						391
Adjusted weighted average common shares outstanding for diluted income per share			30,781						30,193						30,583						30,171
Earnings Per Share:
Basic net income per common share			$	0.19					$	0.09					$	0.35					$	0.16
Diluted net income per common share			$	0.18					$	0.09					$	0.35					$	0.15

(a)						The diluted per share amounts do not reflect common share equivalents outstanding of 1,375 and 1,788 for the three and six months ended June 30, 2024, and 2,312 and 2,158 for the three and six months ended June 30, 2023, respectively, because of their anti-dilutive effect.

Revenue is recognized when services are provided to the patients at the amount that reflects the consideration to which the Company expects to be entitled from patients and third-party payors, including Medicare, Medicaid, and managed care programs (Commercial, Medicare Advantage and Managed Medicaid plans). The healthcare services in home health and hospice patient contracts include routine services in exchange for a contractual agreed-upon amount or rate. Routine services are treated as a single performance obligation satisfied over time as services are rendered. As such, patient care services represent a bundle of services that are not capable of being distinct within the context of the contract. Additionally, there may be ancillary services which are not included in the rates for routine services, but instead are treated as separate performance obligations satisfied at a point in time, if and when those services are rendered.

Revenue recognized from healthcare services is adjusted for estimates of variable consideration to arrive at the transaction price. The Company determines the transaction price based on contractually agreed-upon amounts or rates, adjusted for estimates of variable consideration. The Company uses the expected value method in determining the variable component that should be used to arrive at the transaction price, using contractual agreements and historical reimbursement experience within each payor type. The amount of variable consideration which is included in the transaction price may be constrained, and is included in the net revenue only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. If actual amounts of consideration ultimately received differ from the Company’s estimates, the Company adjusts these estimates, which would affect net service revenue in the period such variances become known.

The Company records revenue from these governmental and managed care programs as services are performed at their expected net realizable amounts under these programs. The Company’s revenue from governmental and managed care programs is subject to audit and retroactive adjustment by governmental and third-party agencies. Consistent with healthcare industry accounting practices, any changes to these governmental revenue estimates are recorded in the period the change or adjustment becomes known based on final settlement.

Disaggregation of Revenue

The Company disaggregates revenue from contracts with its patients by reportable operating segments and payors. The Company has determined that disaggregating revenue into these categories achieves the disclosure objectives to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

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The Company’s service specific revenue recognition policies are as follows:

Home Health Revenue

Medicare Revenue

Net service revenue is recognized in accordance with the Patient Driven Groupings Model (“PDGM”). Under PDGM, Medicare provides agencies with payments for each 30-day payment period provided to beneficiaries. If a beneficiary is still eligible for care after the end of the first 30-day payment period, a second 30-day payment period can begin. There are no limits to the number of periods of care a beneficiary who remains eligible for the home health benefit can receive. While payment for each 30-day payment period is adjusted to reflect the beneficiary’s health condition and needs, a special outlier provision exists to ensure appropriate payment for those beneficiaries that have the most expensive care needs. The payment under the Medicare program is also adjusted for certain variables including, but not limited to: (a) a low utilization payment adjustment if the number of visits is below an established threshold that varies based on the diagnosis of a beneficiary; (b) a partial payment if the patient transferred to another provider or the Company received a patient from another provider before completing the period of care; (c) adjustment to the admission source of claim if it is determined that the patient had a qualifying stay in a post-acute care setting within 14 days prior to the start of a 30-day payment period; (d) the timing of the 30-day payment period provided to a patient in relation to the admission date, regardless of whether the same home health provider provided care for the entire series of episodes; (e) changes to the acuity of the patient during the previous 30-day payment period; (f) changes in the base payments established by the Medicare program; (g) adjustments to the base payments for case mix and geographic wages; and (h) recoveries of overpayments.

The Company adjusts Medicare revenue on completed episodes to reflect differences between estimated and actual payment amounts, an inability to obtain appropriate billing documentation and other reasons unrelated to credit risk. Therefore, the Company believes that its reported net service revenue and patient accounts receivable will be the net amounts to be realized from Medicare for services rendered.

In addition to revenue recognized on completed episodes and periods, the Company also recognizes a portion of revenue associated with episodes and periods in progress. Episodes in progress are 30-day payment periods that begin during the reporting period but were not completed as of the end of the period. As such, the Company estimates revenue and recognizes it on a daily basis. The primary factors underlying this estimate are the number of episodes in progress at the end of the reporting period, expected Medicare revenue per period of care or episode of care and the Company’s estimate of the average percentage complete based on the scheduled end of period and end of episode dates.

Non-Medicare Revenue

Episodic Based Revenue - The Company recognizes revenue in a similar manner as it recognizes Medicare revenue for episodic-based rates that are paid by other insurance carriers, including carriers administering Medicare Advantage programs. These rates can vary based upon the negotiated terms.

Non-episodic Based Revenue - Revenue is recognized on an accrual basis based upon the date of service at amounts equal to its established or estimated per visit rates, as applicable.

Hospice Revenue

Revenue is recognized on an accrual basis based upon the date of service at amounts equal to the estimated payment rates. The estimated payment rates are calculated as daily rates for each of the levels of care the Company delivers. Revenue is adjusted for an inability to obtain appropriate billing documentation or authorizations acceptable to the payor and other reasons unrelated to credit risk. Additionally, as Medicare hospice revenue is subject to an inpatient cap and an overall payment cap, the Company monitors its provider numbers and estimates amounts due back to Medicare if a cap has been exceeded. The Company regularly evaluates and records these adjustments as a reduction to revenue and an increase to other accrued liabilities.

Senior Living Revenue

The Company has elected the lessor practical expedient within ASC Topic 842, Leases and therefore recognizes, measures, presents, and discloses the revenue for services rendered under the Company’s senior living residency agreements

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based upon the predominant component, either the lease or non-lease component, of the contracts. The Company has determined that the services included under the Company’s senior living residency agreements each have the same timing and pattern of transfer. The Company recognizes revenue under ASC Topic 606, Revenue from Contracts with Customers for its senior residency agreements, for which it has determined that the non-lease components of such residency agreements are the predominant component of each such contract.

The Company’s senior living revenue consists of fees for basic housing and assisted living care. Accordingly, the Company records revenue when services are rendered on the date services are provided at amounts billable to individual residents. Residency agreements are generally for a term of 30 days, with resident fees billed monthly in advance. For residents under reimbursement arrangements with Medicaid, revenue is recorded based on contractually agreed-upon amounts or rates on a per resident, daily basis or as services are rendered.

Revenue By Payor

Revenue by payor for the three months ended June 30, 2024 and 2023, is summarized in the following tables:

						Three Months Ended June 30, 2024
						Home Health and Hospice Services
						Home Health Services						Hospice Services						Senior Living Services						Total Revenue						Revenue %
Medicare						$	30,389					$	51,491					$	—					$	81,880					48.5		%
Medicaid						7,400						6,463						12,599						26,462						15.7
Subtotal						37,789						57,954						12,599						108,342						64.2
Managed care						20,335						1,014						—						21,349						12.7
Private and other(a)						7,830						379						30,845						39,054						23.1
Total revenue						$	65,954					$	59,347					$	43,444					$	168,745					100.0		%

(a)						Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations and management services agreement.

						Three Months Ended June 30, 2023
						Home Health and Hospice Services
						Home Health Services						Hospice Services						Senior Living Services						Total Revenue						Revenue %
Medicare						$	23,920					$	40,294					$	—					$	64,214					48.5		%
Medicaid						2,466						4,682						11,783						18,931						14.3
Subtotal						26,386						44,976						11,783						83,145						62.8
Managed care						15,837						1,417						—						17,254						13.1
Private and other(a)						6,235						169						25,478						31,882						24.1
Total revenue						$	48,458					$	46,562					$	37,261					$	132,281					100.0		%

(a)						Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations.

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Revenue by payor for the six months ended June 30, 2024 and 2023, is summarized in the following tables:

						Six Months Ended June 30, 2024
						Home Health and Hospice Services
						Home Health Services						Hospice Services						Senior Living Services						Total Revenue						Revenue %
Medicare						$	60,231					$	98,630					$	—					$	158,861					48.8		%
Medicaid						13,945						12,622						24,961						51,528						15.8
Subtotal						74,176						111,252						24,961						210,389						64.6
Managed care						39,421						2,050						—						41,471						12.7
Private and other(a)						14,240						652						58,908						73,800						22.7
Total revenue						$	127,837					$	113,954					$	83,869					$	325,660					100.0		%

(a)						Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations and management services agreement.

						Six Months Ended June 30, 2023
						Home Health and Hospice Services
						Home Health Services						Hospice Services						Senior Living Services						Total Revenue						Revenue %
Medicare						$	47,296					$	77,674					$	—					$	124,970					48.3		%
Medicaid						4,657						9,280						22,625						36,562						14.1
Subtotal						51,953						86,954						22,625						161,532						62.4
Managed care						31,769						2,611						—						34,380						13.3
Private and other(a)						12,526						286						50,021						62,833						24.3
Total revenue						$	96,248					$	89,851					$	72,646					$	258,745					100.0		%

(a)						Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations.

Balance Sheet Impact

Included in the Company’s Condensed Consolidated Balance Sheets are contract assets, comprised of billed accounts receivable and unbilled receivables, which are the result of the timing of revenue recognition, billings and cash collections, as well as, contract liabilities, which primarily represent payments the Company receives in advance of services provided.

Accounts receivable, net as of June 30, 2024 and December 31, 2023 is summarized in the following table:

			June 30, 2024						December 31, 2023
Medicare			$	43,640					$	35,665
Medicaid			14,510						11,578
Managed care			14,814						11,752
Private and other			3,378						2,380
Accounts receivable, gross			76,342						61,375
Less: allowance for doubtful accounts			(253)						(259)
Accounts receivable, net			$	76,089					$	61,116

Concentrations - Credit Risk

The Company has significant accounts receivable balances, the collectability of which is dependent on the availability of funds from certain governmental programs, primarily Medicare and Medicaid. These receivables represent the only significant concentration of credit risk for the Company. The Company does not believe there are significant credit risks

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associated with these governmental programs. The Company believes that an appropriate allowance has been recorded for the possibility of these receivables proving uncollectible, and continually monitors and adjusts these allowances as necessary. The Company’s gross receivables from the Medicare and Medicaid programs accounted for approximately 76.2% and 77.0% of its total gross accounts receivable as of June 30, 2024 and December 31, 2023, respectively. Combined revenue from reimbursement under the Medicare and Medicaid programs accounted for 64.2% and 64.6% of the Company’s revenue for the three and six months ended June 30, 2024, and 62.8% and 62.4% of the Company’s revenue for the three and six months ended June 30, 2023 respectively.

Practical Expedients and Exemptions

As the Company’s contracts have an original duration of one year or less, the Company uses the practical expedient applicable to its contracts and does not consider the time value of money. Further, because of the short duration of these contracts, the Company has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. In addition, the Company has applied the practical expedient provided by ASC 340, Other Assets and Deferred Costs, and all incremental customer contract acquisition costs are expensed as they are incurred because the amortization period would have been one year or less.

The Company classifies its operations into the following reportable operating segments: (1) home health and hospice services, which includes the Company’s home health, hospice and home care businesses; and (2) senior living services, which includes the operation of assisted living, independent living and memory care communities. The reporting segments are business units that offer different services and are managed separately to provide greater visibility into those operations. The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), reviews financial information at the operating segment level. The Company also reports an “all other” category that includes general and administrative expense from the Company’s Service Center.

As of June 30, 2024, the Company provided services through 117 affiliated home health, hospice and home care agencies, and 54 affiliated senior living operations. The Company evaluates performance and allocates capital resources to each segment based on an operating model that is designed to maximize the quality of care provided and profitability. The Company’s Service Center provides various services to all lines of business. The Company does not review assets by segment and therefore assets by segment are not disclosed below.

The CODM uses Segment Adjusted EBITDAR from Operations as the primary measure of profit and loss for the Company's reportable segments and to compare the performance of its operations with those of its competitors. Segment Adjusted EBITDAR from Operations is net income (loss) attributable to the Company's reportable segments excluding interest expense, provision for income taxes, depreciation and amortization expense, rent, and, in order to view the operations performance on a comparable basis from period to period, certain adjustments including: (1) costs at start-up operations, (2) share-based compensation, (3) acquisition related costs and credit allowances, (4) the costs associated with transitioning operations, (5) unusual, non-recurring or redundant charges, and (6) net income attributable to noncontrolling interest. General and administrative expenses are not allocated to the reportable segments, and are included as “All Other,” accordingly the segment earnings measure reported is before allocation of corporate general and administrative expenses. The Company's segment measures may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

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The following tables present certain financial information regarding the Company’s reportable segments, general and administrative expenses are not allocated to the reportable segments and are included in “All Other” for the three and six months ended June 30, 2024 and 2023:

						Home Health and Hospice Services						Senior Living Services						All Other						Total
Three Months Ended June 30, 2024
Revenue						$	125,301					$	43,444					$	—					$	168,745
Segment Adjusted EBITDAR from Operations						$	21,214					$	12,804					$	(10,546)					$	23,472
Three Months Ended June 30, 2023
Revenue						$	95,020					$	37,261					$	—					$	132,281
Segment Adjusted EBITDAR from Operations						$	15,681					$	11,680					$	(7,885)					$	19,476

						Home Health and Hospice Services						Senior Living Services						All Other						Total
Six Months Ended June 30, 2024
Revenue						$	241,791					$	83,869					$	—					$	325,660
Segment Adjusted EBITDAR from Operations						$	40,764					$	24,815					$	(20,707)					$	44,872
Six Months Ended June 30, 2023
Revenue						$	186,099					$	72,646					$	—					$	258,745
Segment Adjusted EBITDAR from Operations						$	30,093					$	21,921					$	(15,399)					$	36,615

The following table provides a reconciliation of Segment Adjusted EBITDAR from Operations to Condensed Consolidated Income from Operations:

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Segment Adjusted EBITDAR from Operations			$	23,472					$	19,476					$	44,872					$	36,615
Less: Depreciation and amortization			1,468						1,214						2,799						2,494
Rent—cost of services			10,524						9,836						20,908						19,433
Other (expense) income			(2)						35						83						65
Adjustments to Segment EBITDAR from Operations:
Less: Costs at start-up operations(a)			(55)						65						(137)						268
Share-based compensation expense and related taxes(b)			1,949						1,354						3,475						2,773
Acquisition related costs and credit allowances(c)			365						72						502						104
Costs associated with transitioning operations(d)			33						538						(595)						585
Unusual, non-recurring or redundant charges(e)			32						226						307						624
Add: Net income attributable to noncontrolling interest			404						125						556						272
Condensed Consolidated Income from Operations			$	9,562					$	6,261					$	18,086					$	10,541

(a)						Represents results related to start-up operations. This amount excludes rent and depreciation and amortization expense related to such operations.
(b)						Share-based compensation expense and related payroll taxes incurred. Share-based compensation expense and related payroll taxes are included in cost of services and general and administrative expense.
(c)						Non-capitalizable costs associated with acquisitions, credit allowances, and write offs for amounts in dispute with the prior owners of certain acquired operations.

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(d)						During the three months ended March 31, 2023, an affiliate of the Company placed its memory care units into transition and began seeking to sublease the units to an unrelated third party. The amount above represents the net operating impact attributable to the units in transition. The amounts reported exclude rent and depreciation and amortization expense related to such operations and include legal settlement costs associated with one of the entities transitioned to Ensign.
(e)						Represents unusual or non-recurring charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses.

The Company is focused on acquiring 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 Interim Financial Statements subsequent to the date of acquisition. Acquisitions are accounted for using the acquisition method of accounting.

2024 Acquisitions

During the six months ended June 30, 2024, the Company expanded its operations with the addition of four home health agencies, two hospice agencies, and three senior living communities. The Company also acquired the real estate of two of three senior living communities. The aggregate purchase price of the real estate of the two senior living communities acquired was $10,380 which consisted primarily of land and building. In connection with the third senior living community, the Company entered into a new long-term “triple-net” lease. 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. These new communities included 261 operational senior living units to be operated by the Company's independent operating subsidiaries.

On January 1, 2024, the Company announced it closed on a joint venture for a home health agency with John Muir Health (“Muir”), a leading nonprofit integrated health system serving communities throughout the east bay region of San Francisco, California. The transaction combines certain assets and the operations of Muir’s home health business and the assets and operations of a local Pennant-affiliated home health agency. The joint venture is majority-owned and managed by an independent operating subsidiary of the Company and provides home health services to patients throughout the San Francisco east bay region. Along with the assets contributed by a local Pennant-affiliated home health agency, the Company paid Muir $11,680 for a majority interest in the joint venture.

The fair value of assets for the joint venture acquired was mostly concentrated in goodwill and intangible assets and as such, this transaction was classified as a business combination in accordance with ASC Topic 805, Business Combinations (“ASC 805”). The fair value of assets acquired for the business combination was $28,406, which preliminarily consisted of goodwill of $19,473, indefinite-lived intangible assets of $8,800 related to a Medicare and Medicaid license, and equipment of $133. The Company acquired a 60.0% ownership interest in the joint venture. The contributions of assets by Muir to the joint venture, resulted in the Company recording a noncontrolling interest with a fair value of $11,726. The Company anticipates that the total goodwill recognized will be fully deductible for tax purposes.

The fair value of assets for one home health agency and one hospice agency acquired were mostly concentrated in goodwill and intangible assets. This transaction was classified as a business combination in accordance with ASC Topic 805, Business Combinations (“ASC 805”). The purchase price for the business combination was $5,000, which preliminarily consisted of goodwill of $3,267, indefinite-lived intangible assets of $1,600 related to Medicare and Medicaid licenses, and equipment and other assets of $133. The Company anticipates that the total goodwill recognized will be fully deductible for tax purposes.

One hospice and two home health agencies acquired were Medicare licenses and are considered asset acquisitions. The fair value of the licenses acquired was $1,000 and was recorded in other indefinite-lived intangibles.

There were no material acquisition costs that were expensed related to the business combinations during the six months ended June 30, 2024.

2023 Acquisitions

During the six months ended June 30, 2023, the Company expanded its operations with the addition of three home health agencies, one hospice agency, two home care agencies, and two senior living communities. In connection with the

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addition of the two senior living communities, the Company entered into a new long-term “triple-net” lease. 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 two home health agencies , two home care agencies, and one hospice agency acquired were mostly concentrated in goodwill and intangible assets 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 $7,261, which consisted of equipment and other assets of $1,027, goodwill of $4,117, and indefinite-lived intangible assets of $2,012 related to Medicare and Medicaid licenses, and other intangible assets of $186 less assumed liabilities of $81. The Company anticipates that the total goodwill recognized will be fully deductible for tax purposes.

One home health agency acquired was a Medicare license and is considered an asset acquisition. The fair value of the home health license acquired was $210 and was allocated to indefinite-lived intangible assets.

There were no material acquisition costs that were expensed related to the business combinations during the six months ended June 30, 2023.

Subsequent Events

On August 1, 2024, the Company closed on the acquisition of certain affiliates of Signature Healthcare at Home (“Signature”) located in Washington and Idaho for an aggregate purchase price of $32,000. The acquisition will add to the Company’s existing strength in the region while building out its operational footprint. We are currently in the process of finalizing our accounting for this transaction and expect to complete our preliminary allocation of the purchase consideration in a subsequent quarter.

The Company has an agreement to purchase additional Signature assets located in Oregon which is anticipated to close January 1, 2025. The final purchase price is subject to certain adjustments based on potential changes in the business between the signing and closing of the agreement.

Property and equipment, net consist of the following:

			June 30, 2024						December 31, 2023
Land			$	5,433					$	96
Building			8,778						1,890
Leasehold improvements			20,296						21,204
Equipment			32,707						29,247
Furniture and fixtures			1,452						1,238
			68,666						53,675
Less: accumulated depreciation			(27,761)						(25,077)
Property and equipment, net			$	40,905					$	28,598

Depreciation expense was $1,468 and $2,799 for the three and six months ended June 30, 2024, respectively, and $1,211 and $2,486 for the three and six months ended June 30, 2023 respectively.

The Company measures certain assets at fair value on a non-recurring basis, including long-lived assets, which are evaluated for impairment. Long-lived assets include assets such as property and equipment, operating lease assets and certain intangible assets. The inputs used to determine the fair value of long-lived assets in the impairment analysis are considered Level 3 measurements due to their subjective nature. Management has evaluated its long-lived assets and determined there was no impairment recorded during the three and six months ended June 30, 2024 and 2023.

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The following table represents activity in goodwill by segment for the six months ended June 30, 2024:

			Home Health and Hospice Services						Senior Living Services						Total
December 31, 2023			$	87,372					$	3,642					$	91,014
Additions			19,473						—						19,473
June 30, 2024			$	106,845					$	3,642					$	110,487

Other indefinite-lived intangible assets consist of the following:

			June 30, 2024						December 31, 2023
Trade name			$	1,385					$	1,385
Medicare and Medicaid licenses			76,157						66,357
Total			$	77,542					$	67,742

Other accrued liabilities consist of the following:

			June 30, 2024						December 31, 2023
Refunds payable			$	1,459					$	1,566
Deferred revenue			1,706						1,658
Resident deposits			1,854						2,367
Property taxes			789						1,255
Deferred state relief funds			1,162						780
Accrued self-insurance liabilities			6,488						4,392
Other			5,765						3,312
Other accrued liabilities			$	19,223					$	15,330

Long-term debt, net consists of the following:

			June 30, 2024						December 31, 2023
Revolving Credit Facility			$	83,000					$	65,000
Less: unamortized debt issuance costs(a)			(826)						(1,086)
Long-term debt, net			$	82,174					$	63,914

(a)						Amortization expense for debt issuance costs was $130 and $261 for the three and six months ended June 30, 2024, respectively, and $130 and $261 for the three and six months ended June 30, 2023, respectively, and is recorded in interest expense, net on the Condensed Consolidated Statements of Income.

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On February 23, 2021, Pennant entered into an amendment to its existing credit agreement (as amended, the “Credit Agreement”), which provides for an increased revolving credit facility with a syndicate of banks with a borrowing capacity of $150,000 (the “Revolving Credit Facility”). On June 12, 2023, Pennant entered into a second amendment to the Credit Agreement that modified the reference rate from LIBOR to Standard Overnight Financing Rate (“SOFR”). The interest rates applicable to loans under the Revolving Credit Facility are, at the Company’s election, either (i) Adjusted Term SOFR (as defined in the Credit Agreement) plus a margin ranging from 2.25% to 3.25% per annum or (ii) Base Rate plus a margin ranging from 1.25% to 2.25% per annum, in each case, based on the ratio of Consolidated Total Net Debt to Consolidated EBITDA (each, as defined in the Credit Agreement). In addition, Pennant pays a commitment fee on the undrawn portion of the commitments under the Revolving Credit Facility which ranges from 0.35% to 0.50% per annum, depending on the Consolidated Total Net Debt to Consolidated EBITDA ratio of the Company and its subsidiaries. The Company is not required to repay any loans under the Credit Agreement prior to maturity in 2026, other than to the extent the outstanding borrowings exceed the aggregate commitments under the Credit Agreement. As of June 30, 2024, the Company’s weighted average interest rate on its outstanding debt was 8.35%. As of June 30, 2024, the Company had available borrowing on the Revolving Credit Facility of $62,814, which is net of outstanding letters of credit of $4,186.

The fair value of the Revolving Credit Facility approximates carrying value, due to the short-term nature and variable interest rates. The fair value of this debt is categorized within Level 2 of the fair value hierarchy based on the observable market borrowing rates.

The Credit Agreement is guaranteed, jointly and severally, by certain of the Company’s independent operating subsidiaries, and is secured by a pledge of stock of the Company's material independent operating subsidiaries as well as a first lien on substantially all of each material operating subsidiary's personal property. The Credit Agreement contains customary covenants that, among other things, restrict, subject to certain exceptions, the ability of the Company and its independent operating subsidiaries to grant liens on their assets, incur indebtedness, sell assets, make investments, engage in acquisitions, mergers or consolidations, amend certain material agreements and pay certain dividends and other restricted payments. Financial covenants require compliance with certain levels of leverage ratios that impact the amount of interest. As of June 30, 2024, the Company was compliant with all such financial covenants.

Subsequent Events

On July 31, 2024, Pennant entered into an amendment to the Credit Agreement (the “Amended Credit Agreement”), which provides for a revolving credit facility (the “2024 Revolving Credit Facility”) with a syndicate of banks with a borrowing capacity of $250,000. The interest rates applicable to loans under the 2024 Revolving Credit Facility are, at the Company’s election, either (i) Term SOFR (as defined in the Amended Credit Agreement) plus a margin ranging from 1.75% to 2.75% per annum or (ii) Base Rate plus a margin ranging from 0.75% to 1.75% per annum, in each case based on the ratio of Consolidated Total Net Debt to Consolidated EBITDA (each, as defined in the Amended Credit Agreement). In addition, Pennant will pay a commitment fee on the undrawn portion of the commitments under the Revolving Credit Facility that will range from 0.25% to 0.45% per annum, depending on the Consolidated Total Net Debt to Consolidated EBITDA ratio of the Company and its subsidiaries. The Company is not required to repay any loans under the Amended Credit Agreement prior to maturity in July 2029.

Outstanding options and restricted stock awards of the Company were granted under the 2019 Omnibus Incentive Plan (the “OIP”) and Long-Term Incentive Plan (the “LTIP,” and together with the OIP, the “Pennant Plans”).

Under the Pennant Plans, stock-based payment awards, including employee stock options, restricted stock awards (“RSA”), and restricted stock units (“RSU” and together with RSA, “Restricted Stock”) are issued based on estimated fair value. The following disclosures represent share-based compensation expense relating to employees of the Company’s subsidiaries and non-employee directors who have awards under the Pennant Plans.

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Total share-based compensation expense for all Plans for the three and six months ended June 30, 2024 and 2023 was:

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Share-based compensation expense related to stock options			$	1,254					984						$	2,251					$	1,834
Share-based compensation expense related to Restricted Stock			149						180						242						357
Share-based compensation expense related to Restricted Stock to non-employee directors			448						139						798						479
Total share-based compensation			$	1,851					$	1,303					$	3,291					$	2,670

In future periods, the Company estimates it will recognize the following share-based compensation expense for unvested stock options and unvested Restricted Stock as of June 30, 2024:

			Unrecognized Compensation Expense						Weighted Average Recognition Period (in years)
Unvested Stock Options			$	15,396					3.7
Unvested Restricted Stock			1,822						3.1
Total unrecognized share-based compensation expense			$	17,218

Stock Options

Under the Pennant Plans, options granted to employees of the subsidiaries of Pennant generally vest over five years at 20% per year on the anniversary of the grant date. Options expire ten years after the date of grant.

The Company uses the Black-Scholes option-pricing model to recognize the value of stock-based compensation expense for share-based payment awards under the Plans. Determining the appropriate fair-value model and calculating the fair value of stock-based awards at the grant date requires considerable judgment, including estimating stock price volatility and expected option life. The Company develops estimates based on historical data and market information, which can change significantly over time.

The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model with the following weighted average assumptions for stock options granted as of June 30:

Grant Year						Options Granted						Risk-Free Interest Rate						Expected Life(a)						Expected Volatility(b)						Dividend Yield						Weighted Average Fair Value of Options
2024						714						4.3		%				6.5						42.6		%				—		%				$	9.89
2023						656						4.0		%				6.5						41.6		%				—		%				$	6.78

(a)						Under the midpoint method, the expected option life is the midpoint between the contractual option life and the average vesting period for the options being granted. This resulted in an expected option life of 6.5 years for the options granted.
(b)						Because the Company’s equity shares have been traded for a relatively short period of time, expected volatility assumption was based on the volatility of related industry stocks.

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The following table represents the employee stock option activity during the six months ended June 30, 2024:

			Number of Options Outstanding						Weighted Average Exercise Price						Number of Options Vested						Weighted Average Exercise Price of Options Vested
December 31, 2023			2,924						18.79						1,190						$	19.14
Granted			714						19.96
Exercised			(172)						7.63
Forfeited			(107)						20.73
Expired			(60)						30.58
June 30, 2024			3,299						$	19.33					1,226						$	20.42

Restricted Stock

A summary of the status of Pennant’s non-vested Restricted Stock, and changes during the six months ended June 30, 2024, is presented below:

			Non-Vested Restricted Stock						Weighted Average Grant Date Fair Value
December 31, 2023			265						$	14.27
Granted			45						17.73
Vested			(55)						17.62
Forfeited			(21)						16.26
June 30, 2024			234						$	13.97

The Company’s independent operating subsidiaries lease senior living communities and its administrative offices under non-cancelable operating leases, most of which have initial lease terms ranging from 15 to 25 years. The Company’s independent operating subsidiaries also lease the administrative offices of home health and hospice agencies, which generally have lease terms that range from one to 11 years. Most of these leases contain renewal options, most involve rent increases and none contain purchase options. The lease term excludes lease renewals because the renewal rents are not at a bargain, there are no economic penalties for the Company to renew the lease, and it is not reasonably certain that the Company will exercise the extension options. The Company elected the accounting policy practical expedients in ASC 842 to: (i) combine associated lease and non-lease components into a single lease component; and (ii) exclude recording short-term leases as right-of-use assets and liabilities on the condensed consolidated balance sheets. Non-lease components, which are not significant overall, are combined with lease components.

As of June 30, 2024, the Company’s independent operating subsidiaries leased 29 senior living communities from subsidiaries of Ensign (“Ensign Leases”) under a master lease arrangement. The existing leases with subsidiaries of Ensign have initial terms of between 14 to 20 years. The total amount of rent expense included in rent - cost of services paid to subsidiaries of Ensign was $3,488 and $6,976 for the three and six months ended June 30, 2024, respectively, and $3,333 and $6,749 for the three and six months ended June 30, 2023, respectively. In addition to rent, each of the operating companies are required to pay the following: (1) all impositions and taxes levied on or with respect to the leased properties (other than taxes on the income of the lessor); (2) all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties; (3) all insurance required in connection with the leased properties and the business conducted on the leased properties; (4) all community maintenance and repair costs; and (5) all fees in connection with any licenses or authorizations necessary or appropriate for the leased properties and the business conducted on the leased properties.

Fourteen of the Company’s affiliated senior living communities, excluding the communities that are operated under the Ensign Leases (as defined herein), are operated under three separate master lease arrangements. Under these master leases, a breach at a single community could subject one or more of the other communities covered by the same master lease to the same

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default risk. Failure to comply with Medicare and Medicaid provider requirements is a default under several of the Company’s leases and master leases. With an indivisible lease, it is difficult to restructure the composition of the portfolio or economic terms of the master lease without the consent of the landlord.

The components of operating lease cost, are as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Operating Lease Costs:
Community Rent—cost of services			$	8,860					$	8,462					$	17,515					$	16,736
Office Rent—cost of services			1,664						1,374						3,393						2,697
Rent—cost of services			$	10,524					$	9,836					$	20,908					$	19,433
General and administrative expense			$	116					$	104					$	203					$	197
Variable lease cost (a)			$	2,239					$	1,761					$	4,269					$	3,491

(a)						Represents variable lease cost for operating leases, which costs include property taxes and insurance, common area maintenance, and consumer price index increases, incurred as part of the Company’s triple net lease, and which is included in cost of services for the three and six months ended June 30, 2024 and 2023.

The following table shows the lease maturity analysis for all leases as of June 30, 2024, for the years ended December 31:

Year			Amount
2024 (Remainder)			$	19,680
2025			38,276
2026			36,728
2027			35,616
2028			34,832
Thereafter			260,683
Total lease payments			425,815
Less: present value adjustments			(155,729)
Present value of total lease liabilities			270,086
Less: current lease liabilities			(18,473)
Long-term operating lease liabilities			$	251,613

Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used its incremental borrowing rate based on the information available at each lease’s commencement date to determine each lease's operating lease liability. As of June 30, 2024, the weighted average remaining lease term is 12.1 years and the weighted average discount rate is 8.1%.

The Company recorded income tax expense of $1,844 and $1,921 or 23.2% and 39.7% of earnings before income taxes for the three months ended June 30, 2024 and 2023, respectively. The decrease in the effective tax rate is primarily due to not having the impact of a change in the deductibility of equity compensation of certain executives in the current year.

The Company recorded income tax expense of $3,603 and $2,828, or 24.4% and 36.5% of earnings before income taxes for the six months ended June 30, 2024 and 2023, respectively. The decrease in the effective tax rate is primarily due to not having the impact of a change in the deductibility of equity compensation of certain executives in the current year.

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The Company has a 401(k) defined contribution plan (the “401(k) Plan”), whereby eligible employees may contribute up to 90% of their annual basic earnings, subject to applicable annual Internal Revenue Code limits. Additionally, the 401(k) Plan provides for discretionary matching contributions (as defined in the 401(k) Plan) by the Company. The Company expensed matching contributions to the 401(k) Plan of $281 and $572 for the three and six months ended June 30, 2024, and $205 and $418 for the three and six months ended June 30, 2023.

The Company has a non-qualified deferred compensation plan (the “DCP”) for executives, other highly compensated employees, independent contractors and non-employee directors. The independent contractors and non-employee directors are otherwise ineligible for participation in the Company's 401(k) plan. The DCP allows participants to defer the receipt of a portion of their base compensation, and further allows certain participants to defer up to 80% of their base salary and bonus compensation or director fees. At the participant’s election, payments can be deferred until a specific date at least one year after the year of deferral or until termination of engagement with the Company and can be paid in a lump sum or in up to ten annual installments. Separate deferral elections can be made for each year, and in limited circumstances, existing payment elections may be changed. The amounts deferred are credited with earnings and losses based upon the actual performance of the deemed investments selected by the participant. The rate of return for each participant varies depending on the specific investment elections made by the participant. Additionally, the plan deposits the employee deferrals into a rabbi trust and the funds are generally invested in individual variable life insurance contracts owned by the Company that are specifically designed to informally fund savings plans of this nature. The Company paid for related administrative costs, which were immaterial during the fiscal years presented.

As of June 30, 2024 and 2023, the Company’s deferred compensation liabilities were $2,020 and $968, respectively, in other long-term liabilities on the condensed consolidated balance sheets. The cash surrender value of the individual variable life insurance contracts is based on investment funds that shadow the investment allocations specified by participants in the DCP. As of June 30, 2024 and 2023, the cash surrender value of the company owned life insurance (“COLI”) policies were $2,019 and $950, respectively, and were included as a component of restricted and other assets on the condensed consolidated balance sheets. There are no outstanding loan amounts offset against the cash surrender value of the COLI policies. The losses recorded for the change in cash surrender value were immaterial for each period presented.

Regulatory Matters - The Company provides services in complex and highly regulated industries. The Company’s compliance with applicable U.S. federal, state and local laws and regulations governing these industries may be subject to governmental review and adverse findings may result in significant regulatory action, which could include sanctions, damages, fines, penalties (many of which may not be covered by insurance), and even exclusion from government programs. The Company is a party to various regulatory and other governmental audits and investigations in the ordinary course of business and cannot predict the ultimate outcome of any federal or state regulatory survey, audit or investigation. While governmental audits and investigations are the subject of administrative appeals, the appeals process, even if successful, may take several years to resolve and penalties subject to appeal may remain in place during such appeals, which may include suspension, termination, or revocation of participation in governmental programs for the payment of the services the Company provides. The Department of Justice, HHS, CMS, or other federal and state enforcement and regulatory agencies may conduct additional investigations related to the Company's businesses. The Company believes it is presently in compliance in all material respects with all applicable laws and regulations.

Cost-Containment Measures - Government and third-party payors have instituted cost-containment measures designed to limit payments made to providers of healthcare services, may propose future cost-containment measures, and there can be no assurance that future measures designed to limit payments made to providers will not adversely affect the Company.

Indemnities - From time to time, the Company enters into certain types of contracts that contingently require the Company to indemnify parties against third-party claims. These contracts primarily include (i) certain real estate leases, under which the Company may be required to indemnify property owners or prior operators for post-transfer environmental or other liabilities and other claims arising from the Company’s use of the applicable premises, (ii) operations transfer agreements, in which the Company agrees to indemnify past operators of agencies and communities the Company acquires against certain liabilities arising from the transfer of the operation and/or the operation thereof after the transfer, (iii) certain Ensign lending agreements, and (iv) certain agreements with management, directors and employees, under which the subsidiaries of the Company may be required to indemnify such persons for liabilities arising out of their employment relationships. The terms of such obligations vary by contract and, in most instances, a specific or maximum dollar amount is not explicitly stated therein.

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Generally, amounts under these contracts cannot be reasonably estimated until a specific claim is asserted. Consequently, because no claims have been asserted, no liabilities have been recorded for these obligations on the Company’s Condensed Consolidated Balance Sheets for any of the periods presented.

Litigation - The Company’s businesses involve a significant risk of liability given the age and health of the patients and residents served by its independent operating subsidiaries. The Company, its operating subsidiaries, and others in the industry may be subject to a number of claims and lawsuits, including negligence and professional liability claims, alleging that services provided have resulted in personal injury, elder abuse, wrongful death or other related claims. Healthcare litigation (including class action litigation) is common and is filed based upon a wide variety of claims and theories, and the Company is routinely subjected to these claims in the ordinary course of business, including potential claims related to patient care and treatment, and professional negligence, as well as employment-related claims. Certain of the states where we conduct business, including California and Nevada, recently adopted laws that increase the maximum amount of non-economic damages that may be awarded to a successful plaintiff in a claim for professional negligence or malpractice arising from care provided by our independent operating subsidiaries. These changes in applicable law may also increase the cost of obtaining and maintaining professional liability insurance to pay for the defense of, and any liability arising under, such claims. If there were a significant increase in the number of these claims or an increase in amounts owing should plaintiffs be successful in their prosecution of these claims, this could materially adversely affect the Company’s business, financial condition, results of operations and cash flows. In addition, the defense of these lawsuits may result in significant legal costs, regardless of the outcome, and may result in large settlement amounts or damage awards.

In addition to the potential lawsuits and claims described above, the Company also is subject to potential lawsuits under the False Claims Act (the “FCA”) and comparable state laws alleging submission of fraudulent claims for services to any governmental healthcare program (such as Medicare) or commercial payor. A violation may provide the basis for exclusion from federally funded healthcare programs. Such exclusions could have a correlative negative impact on the Company’s financial performance. Some states, including California, Arizona and Texas, have enacted similar whistleblower and false claims laws and regulations. In addition, the Deficit Reduction Act of 2005 created incentives for states to enact anti-fraud legislation modeled on the FCA, for which 18 states have qualified, including California and Texas, where we conduct business. As such, the Company could face scrutiny, potential liability and legal expenses and costs based on claims under state false claims acts in markets in which it conducts business.

Under the Fraud Enforcement and Recovery Act (“FERA”) and its associated rules, healthcare providers face significant penalties for the knowing retention of government overpayments, even if no false claim was involved. Providers have an obligation to proactively exercise “reasonable diligence” to identify overpayments and return those overpayments to CMS within 60 days of “identification” or the date any corresponding cost report is due, whichever is later. Retention of overpayments beyond this period may create liability under the FCA. In addition, FERA protects whistleblowers (including employees, contractors, and agents) from retaliation.

The Company cannot predict or provide any assurance as to the possible outcome of any litigation. If any litigation were to proceed, and the Company and its operating companies are subjected to, alleged to be liable for, or agree to a settlement of, claims or obligations under federal Medicare statutes, the FCA, or similar state and federal statutes and related regulations, the Company’s business, financial condition and results of operations and cash flows could be materially and adversely affected. Among other things, any settlement or litigation could involve the payment of substantial sums to settle any alleged civil violations, and may also include the assumption of specific procedural and financial obligations by the Company or its independent operating subsidiaries going forward under a corporate integrity agreement and/or other arrangement with the government.

Medicare Revenue Recoupments - The Company is subject to probe reviews relating to Medicare services, billings and potential overpayments by Unified Program Integrity Contractors (“UPIC”), Recovery Audit Contractors (“RAC”), Zone Program Integrity Contractors (“ZPIC”), Program Safeguard Contractors (“PSC”), Supplemental Medical Review Contractors (“SMRC”) and Medicaid Integrity Contributors (“MIC”) programs, each of the foregoing collectively referred to as “Reviews.”

As of June 30, 2024, 13 of the Company’s independent operating subsidiaries had Reviews scheduled, on appeal or in dispute resolution process, both pre- and post-payment. If an operation fails an initial or subsequent Review, the operation could then be subject to extended Review, suspension of payment, or extrapolation of the identified error rate to all billing in the same time period. The Company, from time to time, receives record requests in Reviews which have resulted in claim denials on previously paid claims. The Company has appealed substantially all denials arising from these Reviews using the applicable appeals process. As of June 30, 2024, and through the filing of this Quarterly Report on Form 10-Q, the Company’s

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independent operating subsidiaries have responded to the Reviews that are currently ongoing, on appeal or in dispute resolution process. The Company cannot predict the ultimate outcome of any regulatory and other governmental Reviews. While such Reviews are the subject of administrative appeals, the appeals process, even if successful, may take several years to resolve. The costs to respond to and defend such Reviews may be significant and an adverse determination in such Reviews may subject the Company to sanctions, damages, extrapolation of damage findings, additional recoupments, fines, other penalties (some of which may not be covered by insurance), and termination from Medicare programs which may, either individually or in the aggregate, have a material adverse effect on the Company's business and financial condition.

From June 2021 to May 2022, one hospice provider number was subject to a Medicare payment suspension imposed by a UPIC. The total amounts suspended was $5,105, which represents all Medicare payments due to the provider number during the suspension. As of June 30, 2024, the remaining amount due from the government payor impacted by the suspension was $246 and was recorded in long-term other assets.

The Medicare payment suspension concluded in May 2022, and the UPIC reviewed 107 patient records covering a 10-month period to determine whether, in its view, a Medicare overpayment was made. Based on the results of the review, the UPIC initially alleged sampled and extrapolated overpayments of $5,105, and withheld that amount through continued recoupment of Medicare payments. The Company is pursuing its appeal rights through the administrative appeals process, including contesting the methodology used by the UPIC to perform statistical extrapolation. To date the Company has been successful in appealing most of the previously denied claims. The Company received the refund of previously withheld amounts totaling $4,859 as of June 30, 2024. The Company continues to work through the appeals process for the remaining denied claims and expects to be successful in those appeals. Based on the information currently available to the Company, the Company cannot predict the timing or the ultimate outcome of this review including refunds to be received.

Insurance - The Company retains risk for a substantial portion of potential claims for general and professional liability, workers’ compensation and automobile liability. Based on changes in law that increase the maximum damages that may be recovered for professional negligence or malpractice claims in states where we operate, including California and Nevada, the costs of maintaining some of these insurance policies may increase in the future. The Company recognizes obligations associated with these costs, up to specified deductible limits in the period in which a claim is incurred, including with respect to both reported claims and claims incurred but not reported. The general and professional liability insurance has a retention limit of $150 per claim with a $500 corridor as an additional out-of-pocket retention we must satisfy for claims within the policy year before the carrier will reimburse losses. The workers’ compensation insurance has a retention limit of $250 per claim, except for policies held in Texas, Washington and Wyoming which are subject to state insurance and possess their own limits.

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v3.24.2.u1

COVER - shares	6 Months Ended
	Jun. 30, 2024	Aug. 05, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-38900
Entity Registrant Name	THE PENNANT GROUP, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-3349931
Entity Address, Address Line One	1675 East Riverside Drive
Entity Address, Address Line Two	Suite 150
Entity Address, City or Town	Eagle
Entity Address, State or Province	ID
Entity Address, Postal Zip Code	83616
City Area Code	(208)
Local Phone Number	506-6100
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	PNTG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		30,206,741
Entity Central Index Key	0001766400
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

v3.24.2.u1

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash	$ 3,043	$ 6,059
Accounts receivable—less allowance for doubtful accounts of $253 and $259, respectively	76,089	61,116
Prepaid expenses and other current assets	14,981	12,902
Total current assets	94,113	80,077
Property and equipment, net	40,905	28,598
Right-of-use assets	267,353	262,923
Deferred tax assets, net	114	0
Restricted and other assets	11,953	9,337
Goodwill	110,487	91,014
Other indefinite-lived intangibles	77,542	67,742
Total assets	602,467	539,691
Current liabilities:
Accounts payable	15,392	10,841
Accrued wages and related liabilities	30,601	28,256
Operating lease liabilities—current	18,473	17,122
Other accrued liabilities	19,223	15,330
Total current liabilities	83,689	71,549
Long-term operating lease liabilities—less current portion	251,613	248,596
Deferred tax liabilities. net	1,336	1,855
Other long-term liabilities	10,662	8,262
Long-term debt, net	82,174	63,914
Total liabilities	429,474	394,176
Commitments and contingencies
Equity:
Common stock, $0.001 par value; 100,000 shares authorized; 30,493 and 30,150 shares issued and outstanding, respectively, at June 30, 2024; and 30,297 and 29,948 shares issued and outstanding, respectively, at December 31, 2023	30	29
Additional paid-in capital	110,311	105,712
Retained earnings	45,259	34,663
Treasury stock, at cost, 3 shares at June 30, 2024 and December 31, 2023	(65)	(65)
Total The Pennant Group, Inc. stockholders’ equity	155,535	140,339
Noncontrolling interest	17,458	5,176
Total equity	172,993	145,515
Total liabilities and equity	$ 602,467	$ 539,691

v3.24.2.u1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 253	$ 259
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	30,493,000	30,297,000
Common stock, shares outstanding (in shares)	30,150,000	29,948,000
Treasury stock, at cost (in shares)	3,000	3,000

v3.24.2.u1

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenue	$ 168,745	$ 132,281	$ 325,660	$ 258,745
Expense
Cost of services	135,313	106,176	261,308	208,778
Rent—cost of services	10,524	9,836	20,908	19,433
General and administrative expense	11,878	8,791	23,314	17,496
Depreciation and amortization	1,468	1,214	2,799	2,494
Loss (gain) on disposition of property and equipment, net	0	3	(755)	3
Total expenses	159,183	126,020	307,574	248,204
Income from operations	9,562	6,261	18,086	10,541
Other (expense) income, net:
Other (expense) income	(2)	35	83	65
Interest expense, net	(1,622)	(1,453)	(3,414)	(2,859)
Other expense, net	(1,624)	(1,418)	(3,331)	(2,794)
Income before provision for income taxes	7,938	4,843	14,755	7,747
Provision for income taxes	1,844	1,921	3,603	2,828
Net income	6,094	2,922	11,152	4,919
Less: Net income attributable to noncontrolling interest	404	125	556	272
Net income attributable to The Pennant Group, Inc.	$ 5,690	$ 2,797	$ 10,596	$ 4,647
Earnings per share:
Basic (in dollars per share)	$ 0.19	$ 0.09	$ 0.35	$ 0.16
Diluted (in dollars per share)	$ 0.18	$ 0.09	$ 0.35	$ 0.15
Weighted average common shares outstanding:
Basic (in shares)	30,142	29,809	30,094	29,780
Diluted (in shares)	30,781	30,193	30,583	30,171

v3.24.2.u1

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Treasury Stock	Non-controlling Interest
Equity, beginning balance, common stock (in shares) at Dec. 31, 2022		30,149
Equity, beginning balance at Dec. 31, 2022	$ 125,657	$ 29	$ 99,764	$ 21,284	$ (65)	$ 4,645
Equity, beginning balance, treasury stock (in shares) at Dec. 31, 2022					3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to The Pennant Group, Inc.	1,850			1,850
Net income attributable to noncontrolling interests	147					147
Share-based compensation	1,367		1,367
Issuance of common stock from the exercise of stock options (in shares)		26
Issuance of common stock from the exercise of stock options	203		203
Net issuance of restricted stock (in shares)		28
Equity, ending balance, common stock (in shares) at Mar. 31, 2023		30,203
Equity, ending balance at Mar. 31, 2023	129,224	$ 29	101,334	23,134	$ (65)	4,792
Equity, ending balance, treasury stock (in shares) at Mar. 31, 2023					3
Equity, beginning balance, common stock (in shares) at Dec. 31, 2022		30,149
Equity, beginning balance at Dec. 31, 2022	125,657	$ 29	99,764	21,284	$ (65)	4,645
Equity, beginning balance, treasury stock (in shares) at Dec. 31, 2022					3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to The Pennant Group, Inc.	4,647
Net income attributable to noncontrolling interests	272
Equity, ending balance, common stock (in shares) at Jun. 30, 2023		30,251
Equity, ending balance at Jun. 30, 2023	133,698	$ 29	102,886	25,931	$ (65)	4,917
Equity, ending balance, treasury stock (in shares) at Jun. 30, 2023					3
Equity, beginning balance, common stock (in shares) at Mar. 31, 2023		30,203
Equity, beginning balance at Mar. 31, 2023	129,224	$ 29	101,334	23,134	$ (65)	4,792
Equity, beginning balance, treasury stock (in shares) at Mar. 31, 2023					3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to The Pennant Group, Inc.	2,797			2,797
Net income attributable to noncontrolling interests	125					125
Share-based compensation	1,303		1,303
Issuance of common stock from the exercise of stock options (in shares)		38
Issuance of common stock from the exercise of stock options	249		249
Net issuance of restricted stock (in shares)		10
Equity, ending balance, common stock (in shares) at Jun. 30, 2023		30,251
Equity, ending balance at Jun. 30, 2023	$ 133,698	$ 29	102,886	25,931	$ (65)	4,917
Equity, ending balance, treasury stock (in shares) at Jun. 30, 2023					3
Equity, beginning balance, common stock (in shares) at Dec. 31, 2023	29,948	30,297
Equity, beginning balance at Dec. 31, 2023	$ 145,515	$ 29	105,712	34,663	$ (65)	5,176
Equity, beginning balance, treasury stock (in shares) at Dec. 31, 2023	3				3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to The Pennant Group, Inc.	$ 4,906			4,906
Noncontrolling interests assumed related to acquisitions	11,726					11,726
Net income attributable to noncontrolling interests	152					152
Share-based compensation	1,440		1,440
Issuance of common stock from the exercise of stock options (in shares)		72
Issuance of common stock from the exercise of stock options	493	$ 1	492
Net issuance of restricted stock (in shares)		2
Equity, ending balance, common stock (in shares) at Mar. 31, 2024		30,371
Equity, ending balance at Mar. 31, 2024	$ 164,232	$ 30	107,644	39,569	$ (65)	17,054
Equity, ending balance, treasury stock (in shares) at Mar. 31, 2024					3
Equity, beginning balance, common stock (in shares) at Dec. 31, 2023	29,948	30,297
Equity, beginning balance at Dec. 31, 2023	$ 145,515	$ 29	105,712	34,663	$ (65)	5,176
Equity, beginning balance, treasury stock (in shares) at Dec. 31, 2023	3				3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to The Pennant Group, Inc.	$ 10,596
Net income attributable to noncontrolling interests	$ 556
Equity, ending balance, common stock (in shares) at Jun. 30, 2024	30,150	30,493
Equity, ending balance at Jun. 30, 2024	$ 172,993	$ 30	110,311	45,259	$ (65)	17,458
Equity, ending balance, treasury stock (in shares) at Jun. 30, 2024	3				3
Equity, beginning balance, common stock (in shares) at Mar. 31, 2024		30,371
Equity, beginning balance at Mar. 31, 2024	$ 164,232	$ 30	107,644	39,569	$ (65)	17,054
Equity, beginning balance, treasury stock (in shares) at Mar. 31, 2024					3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) attributable to The Pennant Group, Inc.	5,690			5,690
Net income attributable to noncontrolling interests	404					404
Share-based compensation	1,851		1,851
Issuance of common stock from the exercise of stock options (in shares)		100
Issuance of common stock from the exercise of stock options	$ 816		816
Net issuance of restricted stock (in shares)		22
Equity, ending balance, common stock (in shares) at Jun. 30, 2024	30,150	30,493
Equity, ending balance at Jun. 30, 2024	$ 172,993	$ 30	$ 110,311	$ 45,259	$ (65)	$ 17,458
Equity, ending balance, treasury stock (in shares) at Jun. 30, 2024	3				3

v3.24.2.u1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income	$ 11,152	$ 4,919
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,799	2,494
Amortization of deferred financing fees	261	261
(Gain) loss on disposition of property and equipment, net	(755)	3
Provision for doubtful accounts	457	349
Share-based compensation	3,291	2,670
Deferred income taxes	(634)	2,365
Change in operating assets and liabilities, net of acquisitions:
Accounts receivable	(15,429)	(2,631)
Prepaid expenses and other assets	(2,905)	5,607
Operating lease obligations	(130)	182
Accounts payable	4,804	(732)
Accrued wages and related liabilities	2,345	(435)
Other accrued liabilities	4,396	(99)
Income taxes payable	31	0
Other long-term liabilities	1,353	580
Net cash provided by operating activities	11,036	15,533
Cash flows from investing activities:
Purchase of property and equipment	(4,762)	(3,973)
Cash payments for business acquisitions	(16,680)	(7,261)
Cash payments for asset acquisitions	(11,380)	0
Escrow deposits	(1,755)	0
Other	1,297	8
Net cash used in investing activities	(33,280)	(11,226)
Cash flows from financing activities:
Proceeds from Revolving Credit Facility	134,000	94,000
Payments on Revolving Credit Facility	(116,000)	(98,000)
Finance lease obligations	(81)	0
Issuance of common stock upon the exercise of options	1,309	452
Net cash provided by (used in) financing activities	19,228	(3,548)
Net (decrease) increase in cash	(3,016)	759
Cash beginning of period	6,059	2,079
Cash end of period	3,043	2,838
Cash paid during the period for:
Interest	3,377	2,857
Income taxes	3,308	160
Lease liabilities	19,248	17,898
Right-of-use assets obtained in exchange for new operating lease obligations	13,822	8,329
Non-cash investing activity:
Capital expenditures in accounts payable	$ 66	$ 402

v3.24.2.u1

DESCRIPTION OF BUSINESS	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS The Pennant Group, Inc. (herein referred to as “Pennant,” the “Company,” “it,” or “its”), is a holding company with no direct operating assets, employees or revenue. The Company, through its independent operating subsidiaries, provides healthcare services across the post-acute care continuum. As of June 30, 2024, the Company’s subsidiaries operated 117 home health, hospice and home care agencies and 54 senior living communities located in Arizona, California, Colorado, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. Certain of the Company’s subsidiaries, collectively referred to as the Service Center, provide accounting, payroll, human resources, information technology, legal, risk management, and other services to the operations through contractual relationships. The Service Center also provides certain of these services to unaffiliated third parties under management agreements. Each of the Company’s affiliated operations are operated by separate, independent subsidiaries that have their own management, employees and assets. References herein to the consolidated “Company” and “its” assets and activities are not meant to imply, nor should they be construed as meaning, that Pennant has direct operating assets, employees or revenue, or that any of the subsidiaries are operated by Pennant.

v3.24.2.u1

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - The accompanying unaudited condensed consolidated financial statements of the Company (the “Interim Financial Statements”) reflect the Company’s financial position, results of operations, and cash flows of the business. The Interim Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the regulations of the Securities and Exchange Commission (“SEC”). Management believes that the Interim Financial Statements reflect, in all material respects, all adjustments which are of a normal and recurring nature necessary to present fairly the Company’s financial position, results of operations, and cash flows for the periods presented in conformity with GAAP. The results reported in these Interim Financial Statements are not necessarily indicative of results that may be expected for the entire year. The Condensed Consolidated Balance Sheet as of December 31, 2023 is derived from the Company’s annual audited Consolidated Financial Statements for the fiscal year ended December 31, 2023, which should be read in conjunction with these Interim Financial Statements. Certain information in the accompanying footnote disclosures normally included in annual financial statements was condensed or omitted for the interim periods presented in accordance with GAAP. All significant intercompany transactions and balances between the various legal entities comprising the Company have been eliminated in consolidation. The Company presents noncontrolling interests within the equity section of its Condensed Consolidated Balance Sheets and the amount of consolidated net income that is attributable to the Company and the noncontrolling interest in its Condensed Consolidated Statements of Income. The Company consists of various limited liability companies and corporations established to operate home health, hospice, home care, and senior living operations. The Interim Financial Statements include the accounts of all entities controlled by the Company through its ownership of a majority voting interest. Estimates and Assumptions - The preparation of the Interim Financial Statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Interim Financial Statements and the reported amounts of revenue and expenses during the reporting periods. The most significant estimates in the Interim Financial Statements relate to self-insurance reserves, revenue recognition, and intangible assets and goodwill. Actual results could differ from those estimates. State relief funding. The Company receives state relief funding through programs from various states, including healthcare relief funding under the American Rescue Plan Act (ARPA), and other state specific relief programs. The funding generally incorporates specific use requirements primarily for direct patient care including labor related expenses that are attributable to the COVID-19 pandemic or are associated with providing patient care. These funds are recognized as a reduction of cost of services expenses when related expenses are incurred. As of June 30, 2024 and December 31, 2023, the Company had $1,162 and $780 in unapplied state relief funds, respectively. The unapplied state relief funds received are recorded in other accrued liabilities. The Company recognized state relief funding totaling $1,124 and $1,577 for the three and six months ended June 30, 2024, and $1,397 and $2,082 for the three and six months ended June 30, 2023, respectively, which the Company recognized as a reduction of cost of services expense. Recent Accounting Pronouncements Except for rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws and a limited number of grandfathered standards, the Financial Accounting Standards Board (“FASB”) ASC is the sole source of authoritative GAAP literature recognized by the FASB and applicable to the Company. For any new pronouncements announced, the Company considers whether the new pronouncements could alter previous generally accepted accounting principles and determines whether any new or modified principles will have a material impact on the Company's reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of the Company's financial management and certain standards are under consideration. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires the Company to expand the breadth and frequency of segment disclosures to include additional information about significant segment expenses, the chief operating decision maker and other items, and also requires the annual disclosures on an interim basis. This guidance is effective for annual periods beginning after December 15, 2023, which will be the Company's fiscal year 2024, with early adoption permitted. The Company is currently evaluating the impact of the ASU on its quarterly and annual reports. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires the Company to disclose disaggregated jurisdictional and categorical information for the tax rate reconciliation, income taxes paid and other income tax related amounts. This guidance is effective for annual periods beginning after December 15, 2024, which will be the Company's fiscal year 2025, with early adoption permitted. The Company doesn’t expect it to have any material impacts.

v3.24.2.u1

TRANSACTIONS WITH ENSIGN	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
TRANSACTIONS WITH ENSIGN	TRANSACTIONS WITH ENSIGN Pennant completed its separation from The Ensign Group, Inc. (“Ensign”) in 2019. Certain directors who serve on our Board of Directors also serve as directors of Ensign and own shares of Ensign common stock. Pennant and Ensign continue to partner in the provision of services along the healthcare continuum. The Company incurred costs of $302 and $582 for the three and six months ended June 30, 2024, and $192 and $465 for the three and six months ended June 30, 2023, respectively, that related primarily to shared services at proximate operations. Expenses related to room and board charges at Ensign skilled nursing facilities for hospice patients were $1,570 and $3,070 for the three and six months ended June 30, 2024, and $1,014 and $1,954 for the three and six months ended June 30, 2023, respectively, and are included in cost of services. The Company’s independent operating subsidiaries leased 29 communities from subsidiaries of Ensign under a master lease arrangement as of both June 30, 2024 and June 30, 2023. See further discussion below at Note 13, Leases.

v3.24.2.u1

NET INCOME PER COMMON SHARE	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
NET INCOME PER COMMON SHARE	NET INCOME PER COMMON SHARE Basic net income per share is computed by dividing net income attributable to stockholders of the Company by the weighted average number of outstanding common shares for the period. The computation of diluted net income per share is similar to the computation of basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. The following table sets forth the computation of basic and diluted net income per share for the periods presented: Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Numerator:   Net income attributable to The Pennant Group, Inc. $ 5,690  $ 2,797  $ 10,596  $ 4,647  Denominator: Weighted average shares outstanding for basic net income per share 30,142  29,809  30,094  29,780  Plus: assumed incremental shares from exercise of options and assumed conversion or vesting of restricted stock(a) 639  384  489  391  Adjusted weighted average common shares outstanding for diluted income per share 30,781  30,193  30,583  30,171  Earnings Per Share: Basic net income per common share $ 0.19  $ 0.09  $ 0.35  $ 0.16  Diluted net income per common share $ 0.18  $ 0.09  $ 0.35  $ 0.15  (a) The diluted per share amounts do not reflect common share equivalents outstanding of 1,375 and 1,788 for the three and six months ended June 30, 2024, and 2,312 and 2,158 for the three and six months ended June 30, 2023, respectively, because of their anti-dilutive effect.

v3.24.2.u1

REVENUE AND ACCOUNTS RECEIVABLE	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
REVENUE AND ACCOUNTS RECEIVABLE	REVENUE AND ACCOUNTS RECEIVABLE Revenue is recognized when services are provided to the patients at the amount that reflects the consideration to which the Company expects to be entitled from patients and third-party payors, including Medicare, Medicaid, and managed care programs (Commercial, Medicare Advantage and Managed Medicaid plans). The healthcare services in home health and hospice patient contracts include routine services in exchange for a contractual agreed-upon amount or rate. Routine services are treated as a single performance obligation satisfied over time as services are rendered. As such, patient care services represent a bundle of services that are not capable of being distinct within the context of the contract. Additionally, there may be ancillary services which are not included in the rates for routine services, but instead are treated as separate performance obligations satisfied at a point in time, if and when those services are rendered. Revenue recognized from healthcare services is adjusted for estimates of variable consideration to arrive at the transaction price. The Company determines the transaction price based on contractually agreed-upon amounts or rates, adjusted for estimates of variable consideration. The Company uses the expected value method in determining the variable component that should be used to arrive at the transaction price, using contractual agreements and historical reimbursement experience within each payor type. The amount of variable consideration which is included in the transaction price may be constrained, and is included in the net revenue only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. If actual amounts of consideration ultimately received differ from the Company’s estimates, the Company adjusts these estimates, which would affect net service revenue in the period such variances become known. The Company records revenue from these governmental and managed care programs as services are performed at their expected net realizable amounts under these programs. The Company’s revenue from governmental and managed care programs is subject to audit and retroactive adjustment by governmental and third-party agencies. Consistent with healthcare industry accounting practices, any changes to these governmental revenue estimates are recorded in the period the change or adjustment becomes known based on final settlement. Disaggregation of Revenue The Company disaggregates revenue from contracts with its patients by reportable operating segments and payors. The Company has determined that disaggregating revenue into these categories achieves the disclosure objectives to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Company’s service specific revenue recognition policies are as follows: Home Health Revenue Medicare Revenue Net service revenue is recognized in accordance with the Patient Driven Groupings Model (“PDGM”). Under PDGM, Medicare provides agencies with payments for each 30-day payment period provided to beneficiaries. If a beneficiary is still eligible for care after the end of the first 30-day payment period, a second 30-day payment period can begin. There are no limits to the number of periods of care a beneficiary who remains eligible for the home health benefit can receive. While payment for each 30-day payment period is adjusted to reflect the beneficiary’s health condition and needs, a special outlier provision exists to ensure appropriate payment for those beneficiaries that have the most expensive care needs. The payment under the Medicare program is also adjusted for certain variables including, but not limited to: (a) a low utilization payment adjustment if the number of visits is below an established threshold that varies based on the diagnosis of a beneficiary; (b) a partial payment if the patient transferred to another provider or the Company received a patient from another provider before completing the period of care; (c) adjustment to the admission source of claim if it is determined that the patient had a qualifying stay in a post-acute care setting within 14 days prior to the start of a 30-day payment period; (d) the timing of the 30-day payment period provided to a patient in relation to the admission date, regardless of whether the same home health provider provided care for the entire series of episodes; (e) changes to the acuity of the patient during the previous 30-day payment period; (f) changes in the base payments established by the Medicare program; (g) adjustments to the base payments for case mix and geographic wages; and (h) recoveries of overpayments. The Company adjusts Medicare revenue on completed episodes to reflect differences between estimated and actual payment amounts, an inability to obtain appropriate billing documentation and other reasons unrelated to credit risk. Therefore, the Company believes that its reported net service revenue and patient accounts receivable will be the net amounts to be realized from Medicare for services rendered. In addition to revenue recognized on completed episodes and periods, the Company also recognizes a portion of revenue associated with episodes and periods in progress. Episodes in progress are 30-day payment periods that begin during the reporting period but were not completed as of the end of the period. As such, the Company estimates revenue and recognizes it on a daily basis. The primary factors underlying this estimate are the number of episodes in progress at the end of the reporting period, expected Medicare revenue per period of care or episode of care and the Company’s estimate of the average percentage complete based on the scheduled end of period and end of episode dates. Non-Medicare Revenue Episodic Based Revenue - The Company recognizes revenue in a similar manner as it recognizes Medicare revenue for episodic-based rates that are paid by other insurance carriers, including carriers administering Medicare Advantage programs. These rates can vary based upon the negotiated terms. Non-episodic Based Revenue - Revenue is recognized on an accrual basis based upon the date of service at amounts equal to its established or estimated per visit rates, as applicable. Hospice Revenue Revenue is recognized on an accrual basis based upon the date of service at amounts equal to the estimated payment rates. The estimated payment rates are calculated as daily rates for each of the levels of care the Company delivers. Revenue is adjusted for an inability to obtain appropriate billing documentation or authorizations acceptable to the payor and other reasons unrelated to credit risk. Additionally, as Medicare hospice revenue is subject to an inpatient cap and an overall payment cap, the Company monitors its provider numbers and estimates amounts due back to Medicare if a cap has been exceeded. The Company regularly evaluates and records these adjustments as a reduction to revenue and an increase to other accrued liabilities. Senior Living Revenue The Company has elected the lessor practical expedient within ASC Topic 842, Leases and therefore recognizes, measures, presents, and discloses the revenue for services rendered under the Company’s senior living residency agreements based upon the predominant component, either the lease or non-lease component, of the contracts. The Company has determined that the services included under the Company’s senior living residency agreements each have the same timing and pattern of transfer. The Company recognizes revenue under ASC Topic 606, Revenue from Contracts with Customers for its senior residency agreements, for which it has determined that the non-lease components of such residency agreements are the predominant component of each such contract. The Company’s senior living revenue consists of fees for basic housing and assisted living care. Accordingly, the Company records revenue when services are rendered on the date services are provided at amounts billable to individual residents. Residency agreements are generally for a term of 30 days, with resident fees billed monthly in advance. For residents under reimbursement arrangements with Medicaid, revenue is recorded based on contractually agreed-upon amounts or rates on a per resident, daily basis or as services are rendered. Revenue By Payor Revenue by payor for the three months ended June 30, 2024 and 2023, is summarized in the following tables: Three Months Ended June 30, 2024 Home Health and Hospice Services Home Health Services Hospice Services Senior Living Services Total Revenue Revenue % Medicare $ 30,389  $ 51,491  $ —  $ 81,880  48.5  % Medicaid 7,400  6,463  12,599  26,462  15.7  Subtotal 37,789  57,954  12,599  108,342  64.2  Managed care 20,335  1,014  —  21,349  12.7  Private and other(a) 7,830  379  30,845  39,054  23.1  Total revenue $ 65,954  $ 59,347  $ 43,444  $ 168,745  100.0  % (a) Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations and management services agreement. Three Months Ended June 30, 2023 Home Health and Hospice Services Home Health Services Hospice Services Senior Living Services Total Revenue Revenue % Medicare $ 23,920  $ 40,294  $ —  $ 64,214  48.5  % Medicaid 2,466  4,682  11,783  18,931  14.3  Subtotal 26,386  44,976  11,783  83,145  62.8  Managed care 15,837  1,417  —  17,254  13.1  Private and other(a) 6,235  169  25,478  31,882  24.1  Total revenue $ 48,458  $ 46,562  $ 37,261  $ 132,281  100.0  % (a) Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations. Revenue by payor for the six months ended June 30, 2024 and 2023, is summarized in the following tables: Six Months Ended June 30, 2024 Home Health and Hospice Services Home Health Services Hospice Services Senior Living Services Total Revenue Revenue % Medicare $ 60,231  $ 98,630  $ —  $ 158,861  48.8  % Medicaid 13,945  12,622  24,961  51,528  15.8  Subtotal 74,176  111,252  24,961  210,389  64.6  Managed care 39,421  2,050  —  41,471  12.7  Private and other(a) 14,240  652  58,908  73,800  22.7  Total revenue $ 127,837  $ 113,954  $ 83,869  $ 325,660  100.0  % (a) Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations and management services agreement. Six Months Ended June 30, 2023 Home Health and Hospice Services Home Health Services Hospice Services Senior Living Services Total Revenue Revenue % Medicare $ 47,296  $ 77,674  $ —  $ 124,970  48.3  % Medicaid 4,657  9,280  22,625  36,562  14.1  Subtotal 51,953  86,954  22,625  161,532  62.4  Managed care 31,769  2,611  —  34,380  13.3  Private and other(a) 12,526  286  50,021  62,833  24.3  Total revenue $ 96,248  $ 89,851  $ 72,646  $ 258,745  100.0  % (a) Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations. Balance Sheet Impact Included in the Company’s Condensed Consolidated Balance Sheets are contract assets, comprised of billed accounts receivable and unbilled receivables, which are the result of the timing of revenue recognition, billings and cash collections, as well as, contract liabilities, which primarily represent payments the Company receives in advance of services provided. Accounts receivable, net as of June 30, 2024 and December 31, 2023 is summarized in the following table: June 30, 2024 December 31, 2023 Medicare $ 43,640  $ 35,665  Medicaid 14,510  11,578  Managed care 14,814  11,752  Private and other 3,378  2,380  Accounts receivable, gross 76,342  61,375  Less: allowance for doubtful accounts (253) (259) Accounts receivable, net $ 76,089  $ 61,116  Concentrations - Credit Risk The Company has significant accounts receivable balances, the collectability of which is dependent on the availability of funds from certain governmental programs, primarily Medicare and Medicaid. These receivables represent the only significant concentration of credit risk for the Company. The Company does not believe there are significant credit risks associated with these governmental programs. The Company believes that an appropriate allowance has been recorded for the possibility of these receivables proving uncollectible, and continually monitors and adjusts these allowances as necessary. The Company’s gross receivables from the Medicare and Medicaid programs accounted for approximately 76.2% and 77.0% of its total gross accounts receivable as of June 30, 2024 and December 31, 2023, respectively. Combined revenue from reimbursement under the Medicare and Medicaid programs accounted for 64.2% and 64.6% of the Company’s revenue for the three and six months ended June 30, 2024, and 62.8% and 62.4% of the Company’s revenue for the three and six months ended June 30, 2023 respectively. Practical Expedients and Exemptions As the Company’s contracts have an original duration of one year or less, the Company uses the practical expedient applicable to its contracts and does not consider the time value of money. Further, because of the short duration of these contracts, the Company has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. In addition, the Company has applied the practical expedient provided by ASC 340, Other Assets and Deferred Costs, and all incremental customer contract acquisition costs are expensed as they are incurred because the amortization period would have been one year or less.

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BUSINESS SEGMENTS	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
BUSINESS SEGMENTS	BUSINESS SEGMENTS The Company classifies its operations into the following reportable operating segments: (1) home health and hospice services, which includes the Company’s home health, hospice and home care businesses; and (2) senior living services, which includes the operation of assisted living, independent living and memory care communities. The reporting segments are business units that offer different services and are managed separately to provide greater visibility into those operations. The Company’s Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), reviews financial information at the operating segment level. The Company also reports an “all other” category that includes general and administrative expense from the Company’s Service Center. As of June 30, 2024, the Company provided services through 117 affiliated home health, hospice and home care agencies, and 54 affiliated senior living operations. The Company evaluates performance and allocates capital resources to each segment based on an operating model that is designed to maximize the quality of care provided and profitability. The Company’s Service Center provides various services to all lines of business. The Company does not review assets by segment and therefore assets by segment are not disclosed below. The CODM uses Segment Adjusted EBITDAR from Operations as the primary measure of profit and loss for the Company's reportable segments and to compare the performance of its operations with those of its competitors. Segment Adjusted EBITDAR from Operations is net income (loss) attributable to the Company's reportable segments excluding interest expense, provision for income taxes, depreciation and amortization expense, rent, and, in order to view the operations performance on a comparable basis from period to period, certain adjustments including: (1) costs at start-up operations, (2) share-based compensation, (3) acquisition related costs and credit allowances, (4) the costs associated with transitioning operations, (5) unusual, non-recurring or redundant charges, and (6) net income attributable to noncontrolling interest. General and administrative expenses are not allocated to the reportable segments, and are included as “All Other,” accordingly the segment earnings measure reported is before allocation of corporate general and administrative expenses. The Company's segment measures may be different from the calculation methods used by other companies and, therefore, comparability may be limited. The following tables present certain financial information regarding the Company’s reportable segments, general and administrative expenses are not allocated to the reportable segments and are included in “All Other” for the three and six months ended June 30, 2024 and 2023: Home Health and Hospice Services Senior Living Services All Other Total Three Months Ended June 30, 2024 Revenue $ 125,301  $ 43,444  $ —  $ 168,745  Segment Adjusted EBITDAR from Operations $ 21,214  $ 12,804  $ (10,546) $ 23,472  Three Months Ended June 30, 2023 Revenue $ 95,020  $ 37,261  $ —  $ 132,281  Segment Adjusted EBITDAR from Operations $ 15,681  $ 11,680  $ (7,885) $ 19,476  Home Health and Hospice Services Senior Living Services All Other Total Six Months Ended June 30, 2024 Revenue $ 241,791  $ 83,869  $ —  $ 325,660  Segment Adjusted EBITDAR from Operations $ 40,764  $ 24,815  $ (20,707) $ 44,872  Six Months Ended June 30, 2023 Revenue $ 186,099  $ 72,646  $ —  $ 258,745  Segment Adjusted EBITDAR from Operations $ 30,093  $ 21,921  $ (15,399) $ 36,615  The following table provides a reconciliation of Segment Adjusted EBITDAR from Operations to Condensed Consolidated Income from Operations: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Segment Adjusted EBITDAR from Operations $ 23,472  $ 19,476  $ 44,872  $ 36,615  Less: Depreciation and amortization 1,468  1,214  2,799  2,494  Rent—cost of services 10,524  9,836  20,908  19,433  Other (expense) income (2) 35  83  65  Adjustments to Segment EBITDAR from Operations: Less: Costs at start-up operations(a) (55) 65  (137) 268  Share-based compensation expense and related taxes(b) 1,949  1,354  3,475  2,773  Acquisition related costs and credit allowances(c) 365  72  502  104  Costs associated with transitioning operations(d) 33  538  (595) 585  Unusual, non-recurring or redundant charges(e) 32  226  307  624  Add: Net income attributable to noncontrolling interest 404  125  556  272  Condensed Consolidated Income from Operations $ 9,562  $ 6,261  $ 18,086  $ 10,541  (a) Represents results related to start-up operations. This amount excludes rent and depreciation and amortization expense related to such operations. (b) Share-based compensation expense and related payroll taxes incurred. Share-based compensation expense and related payroll taxes are included in cost of services and general and administrative expense. (c) Non-capitalizable costs associated with acquisitions, credit allowances, and write offs for amounts in dispute with the prior owners of certain acquired operations. (d) During the three months ended March 31, 2023, an affiliate of the Company placed its memory care units into transition and began seeking to sublease the units to an unrelated third party. The amount above represents the net operating impact attributable to the units in transition. The amounts reported exclude rent and depreciation and amortization expense related to such operations and include legal settlement costs associated with one of the entities transitioned to Ensign. (e) Represents unusual or non-recurring charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses.

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ACQUISITIONS	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
ACQUISITIONS	ACQUISITIONS The Company is focused on acquiring 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 Interim Financial Statements subsequent to the date of acquisition. Acquisitions are accounted for using the acquisition method of accounting. 2024 Acquisitions During the six months ended June 30, 2024, the Company expanded its operations with the addition of four home health agencies, two hospice agencies, and three senior living communities. The Company also acquired the real estate of two of three senior living communities. The aggregate purchase price of the real estate of the two senior living communities acquired was $10,380 which consisted primarily of land and building. In connection with the third senior living community, the Company entered into a new long-term “triple-net” lease. 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. These new communities included 261 operational senior living units to be operated by the Company's independent operating subsidiaries. On January 1, 2024, the Company announced it closed on a joint venture for a home health agency with John Muir Health (“Muir”), a leading nonprofit integrated health system serving communities throughout the east bay region of San Francisco, California. The transaction combines certain assets and the operations of Muir’s home health business and the assets and operations of a local Pennant-affiliated home health agency. The joint venture is majority-owned and managed by an independent operating subsidiary of the Company and provides home health services to patients throughout the San Francisco east bay region. Along with the assets contributed by a local Pennant-affiliated home health agency, the Company paid Muir $11,680 for a majority interest in the joint venture. The fair value of assets for the joint venture acquired was mostly concentrated in goodwill and intangible assets and as such, this transaction was classified as a business combination in accordance with ASC Topic 805, Business Combinations (“ASC 805”). The fair value of assets acquired for the business combination was $28,406, which preliminarily consisted of goodwill of $19,473, indefinite-lived intangible assets of $8,800 related to a Medicare and Medicaid license, and equipment of $133. The Company acquired a 60.0% ownership interest in the joint venture. The contributions of assets by Muir to the joint venture, resulted in the Company recording a noncontrolling interest with a fair value of $11,726. The Company anticipates that the total goodwill recognized will be fully deductible for tax purposes. The fair value of assets for one home health agency and one hospice agency acquired were mostly concentrated in goodwill and intangible assets. This transaction was classified as a business combination in accordance with ASC Topic 805, Business Combinations (“ASC 805”). The purchase price for the business combination was $5,000, which preliminarily consisted of goodwill of $3,267, indefinite-lived intangible assets of $1,600 related to Medicare and Medicaid licenses, and equipment and other assets of $133. The Company anticipates that the total goodwill recognized will be fully deductible for tax purposes. One hospice and two home health agencies acquired were Medicare licenses and are considered asset acquisitions. The fair value of the licenses acquired was $1,000 and was recorded in other indefinite-lived intangibles. There were no material acquisition costs that were expensed related to the business combinations during the six months ended June 30, 2024. 2023 Acquisitions During the six months ended June 30, 2023, the Company expanded its operations with the addition of three home health agencies, one hospice agency, two home care agencies, and two senior living communities. In connection with the addition of the two senior living communities, the Company entered into a new long-term “triple-net” lease. 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 two home health agencies , two home care agencies, and one hospice agency acquired were mostly concentrated in goodwill and intangible assets 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 $7,261, which consisted of equipment and other assets of $1,027, goodwill of $4,117, and indefinite-lived intangible assets of $2,012 related to Medicare and Medicaid licenses, and other intangible assets of $186 less assumed liabilities of $81. The Company anticipates that the total goodwill recognized will be fully deductible for tax purposes. One home health agency acquired was a Medicare license and is considered an asset acquisition. The fair value of the home health license acquired was $210 and was allocated to indefinite-lived intangible assets. There were no material acquisition costs that were expensed related to the business combinations during the six months ended June 30, 2023. Subsequent Events On August 1, 2024, the Company closed on the acquisition of certain affiliates of Signature Healthcare at Home (“Signature”) located in Washington and Idaho for an aggregate purchase price of $32,000. The acquisition will add to the Company’s existing strength in the region while building out its operational footprint. We are currently in the process of finalizing our accounting for this transaction and expect to complete our preliminary allocation of the purchase consideration in a subsequent quarter. The Company has an agreement to purchase additional Signature assets located in Oregon which is anticipated to close January 1, 2025. The final purchase price is subject to certain adjustments based on potential changes in the business between the signing and closing of the agreement.

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PROPERTY AND EQUIPMENT—NET	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT—NET	PROPERTY AND EQUIPMENT—NET Property and equipment, net consist of the following: June 30, 2024 December 31, 2023 Land $ 5,433  $ 96  Building 8,778  1,890  Leasehold improvements 20,296  21,204  Equipment 32,707  29,247  Furniture and fixtures 1,452  1,238  68,666  53,675  Less: accumulated depreciation (27,761) (25,077) Property and equipment, net $ 40,905  $ 28,598  Depreciation expense was $1,468 and $2,799 for the three and six months ended June 30, 2024, respectively, and $1,211 and $2,486 for the three and six months ended June 30, 2023 respectively. The Company measures certain assets at fair value on a non-recurring basis, including long-lived assets, which are evaluated for impairment. Long-lived assets include assets such as property and equipment, operating lease assets and certain intangible assets. The inputs used to determine the fair value of long-lived assets in the impairment analysis are considered Level 3 measurements due to their subjective nature. Management has evaluated its long-lived assets and determined there was no impairment recorded during the three and six months ended June 30, 2024 and 2023.

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GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS	GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS The following table represents activity in goodwill by segment for the six months ended June 30, 2024: Home Health and Hospice Services Senior Living Services Total December 31, 2023 $ 87,372  $ 3,642  $ 91,014  Additions 19,473  —  19,473  June 30, 2024 $ 106,845  $ 3,642  $ 110,487  Other indefinite-lived intangible assets consist of the following: June 30, 2024 December 31, 2023 Trade name $ 1,385  $ 1,385  Medicare and Medicaid licenses 76,157  66,357  Total $ 77,542  $ 67,742  No goodwill or intangible asset impairment charges were recorded during the three and six months ended June 30, 2024 and 2023.

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OTHER ACCRUED LIABILITIES	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
OTHER ACCRUED LIABILITIES	OTHER ACCRUED LIABILITIES Other accrued liabilities consist of the following: June 30, 2024 December 31, 2023 Refunds payable $ 1,459  $ 1,566  Deferred revenue 1,706  1,658  Resident deposits 1,854  2,367  Property taxes 789  1,255  Deferred state relief funds 1,162  780  Accrued self-insurance liabilities 6,488  4,392  Other 5,765  3,312  Other accrued liabilities $ 19,223  $ 15,330  Refunds payable includes payables related to overpayments, duplicate payments and credit balances from various payor sources. Deferred revenue occurs when the Company receives payments in advance of services provided. Resident deposits include refundable deposits to residents.

v3.24.2.u1

DEBT	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
DEBT	DEBT Long-term debt, net consists of the following: June 30, 2024 December 31, 2023 Revolving Credit Facility $ 83,000  $ 65,000  Less: unamortized debt issuance costs(a) (826) (1,086) Long-term debt, net $ 82,174  $ 63,914  (a) Amortization expense for debt issuance costs was $130 and $261 for the three and six months ended June 30, 2024, respectively, and $130 and $261 for the three and six months ended June 30, 2023, respectively, and is recorded in interest expense, net on the Condensed Consolidated Statements of Income. On February 23, 2021, Pennant entered into an amendment to its existing credit agreement (as amended, the “Credit Agreement”), which provides for an increased revolving credit facility with a syndicate of banks with a borrowing capacity of $150,000 (the “Revolving Credit Facility”). On June 12, 2023, Pennant entered into a second amendment to the Credit Agreement that modified the reference rate from LIBOR to Standard Overnight Financing Rate (“SOFR”). The interest rates applicable to loans under the Revolving Credit Facility are, at the Company’s election, either (i) Adjusted Term SOFR (as defined in the Credit Agreement) plus a margin ranging from 2.25% to 3.25% per annum or (ii) Base Rate plus a margin ranging from 1.25% to 2.25% per annum, in each case, based on the ratio of Consolidated Total Net Debt to Consolidated EBITDA (each, as defined in the Credit Agreement). In addition, Pennant pays a commitment fee on the undrawn portion of the commitments under the Revolving Credit Facility which ranges from 0.35% to 0.50% per annum, depending on the Consolidated Total Net Debt to Consolidated EBITDA ratio of the Company and its subsidiaries. The Company is not required to repay any loans under the Credit Agreement prior to maturity in 2026, other than to the extent the outstanding borrowings exceed the aggregate commitments under the Credit Agreement. As of June 30, 2024, the Company’s weighted average interest rate on its outstanding debt was 8.35%. As of June 30, 2024, the Company had available borrowing on the Revolving Credit Facility of $62,814, which is net of outstanding letters of credit of $4,186. The fair value of the Revolving Credit Facility approximates carrying value, due to the short-term nature and variable interest rates. The fair value of this debt is categorized within Level 2 of the fair value hierarchy based on the observable market borrowing rates. The Credit Agreement is guaranteed, jointly and severally, by certain of the Company’s independent operating subsidiaries, and is secured by a pledge of stock of the Company's material independent operating subsidiaries as well as a first lien on substantially all of each material operating subsidiary's personal property. The Credit Agreement contains customary covenants that, among other things, restrict, subject to certain exceptions, the ability of the Company and its independent operating subsidiaries to grant liens on their assets, incur indebtedness, sell assets, make investments, engage in acquisitions, mergers or consolidations, amend certain material agreements and pay certain dividends and other restricted payments. Financial covenants require compliance with certain levels of leverage ratios that impact the amount of interest. As of June 30, 2024, the Company was compliant with all such financial covenants. Subsequent Events On July 31, 2024, Pennant entered into an amendment to the Credit Agreement (the “Amended Credit Agreement”), which provides for a revolving credit facility (the “2024 Revolving Credit Facility”) with a syndicate of banks with a borrowing capacity of $250,000. The interest rates applicable to loans under the 2024 Revolving Credit Facility are, at the Company’s election, either (i) Term SOFR (as defined in the Amended Credit Agreement) plus a margin ranging from 1.75% to 2.75% per annum or (ii) Base Rate plus a margin ranging from 0.75% to 1.75% per annum, in each case based on the ratio of Consolidated Total Net Debt to Consolidated EBITDA (each, as defined in the Amended Credit Agreement). In addition, Pennant will pay a commitment fee on the undrawn portion of the commitments under the Revolving Credit Facility that will range from 0.25% to 0.45% per annum, depending on the Consolidated Total Net Debt to Consolidated EBITDA ratio of the Company and its subsidiaries. The Company is not required to repay any loans under the Amended Credit Agreement prior to maturity in July 2029.

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OPTIONS AND AWARDS	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
OPTIONS AND AWARDS	OPTIONS AND AWARDS Outstanding options and restricted stock awards of the Company were granted under the 2019 Omnibus Incentive Plan (the “OIP”) and Long-Term Incentive Plan (the “LTIP,” and together with the OIP, the “Pennant Plans”). Under the Pennant Plans, stock-based payment awards, including employee stock options, restricted stock awards (“RSA”), and restricted stock units (“RSU” and together with RSA, “Restricted Stock”) are issued based on estimated fair value. The following disclosures represent share-based compensation expense relating to employees of the Company’s subsidiaries and non-employee directors who have awards under the Pennant Plans. Total share-based compensation expense for all Plans for the three and six months ended June 30, 2024 and 2023 was: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Share-based compensation expense related to stock options $ 1,254  984  $ 2,251  $ 1,834  Share-based compensation expense related to Restricted Stock 149  180  242  357  Share-based compensation expense related to Restricted Stock to non-employee directors 448  139  798  479  Total share-based compensation $ 1,851  $ 1,303  $ 3,291  $ 2,670  In future periods, the Company estimates it will recognize the following share-based compensation expense for unvested stock options and unvested Restricted Stock as of June 30, 2024: Unrecognized Compensation Expense Weighted Average Recognition Period (in years) Unvested Stock Options $ 15,396  3.7 Unvested Restricted Stock 1,822  3.1 Total unrecognized share-based compensation expense $ 17,218  Stock Options Under the Pennant Plans, options granted to employees of the subsidiaries of Pennant generally vest over five years at 20% per year on the anniversary of the grant date. Options expire ten years after the date of grant. The Company uses the Black-Scholes option-pricing model to recognize the value of stock-based compensation expense for share-based payment awards under the Plans. Determining the appropriate fair-value model and calculating the fair value of stock-based awards at the grant date requires considerable judgment, including estimating stock price volatility and expected option life. The Company develops estimates based on historical data and market information, which can change significantly over time. The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model with the following weighted average assumptions for stock options granted as of June 30: Grant Year Options Granted Risk-Free Interest Rate Expected Life(a) Expected Volatility(b) Dividend Yield Weighted Average Fair Value of Options 2024 714  4.3  % 6.5 42.6  % —  % $ 9.89  2023 656  4.0  % 6.5 41.6  % —  % $ 6.78  (a) Under the midpoint method, the expected option life is the midpoint between the contractual option life and the average vesting period for the options being granted. This resulted in an expected option life of 6.5 years for the options granted. (b) Because the Company’s equity shares have been traded for a relatively short period of time, expected volatility assumption was based on the volatility of related industry stocks. The following table represents the employee stock option activity during the six months ended June 30, 2024: Number of Options Outstanding Weighted Average Exercise Price Number of Options Vested Weighted Average Exercise Price of Options Vested December 31, 2023 2,924  18.79  1,190  $ 19.14  Granted 714  19.96  Exercised (172) 7.63  Forfeited (107) 20.73  Expired (60) 30.58  June 30, 2024 3,299  $ 19.33  1,226  $ 20.42  Restricted Stock A summary of the status of Pennant’s non-vested Restricted Stock, and changes during the six months ended June 30, 2024, is presented below: Non-Vested Restricted Stock Weighted Average Grant Date Fair Value December 31, 2023 265  $ 14.27  Granted 45  17.73  Vested (55) 17.62  Forfeited (21) 16.26  June 30, 2024 234  $ 13.97

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LEASES	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
LEASES	LEASES The Company’s independent operating subsidiaries lease senior living communities and its administrative offices under non-cancelable operating leases, most of which have initial lease terms ranging from 15 to 25 years. The Company’s independent operating subsidiaries also lease the administrative offices of home health and hospice agencies, which generally have lease terms that range from one to 11 years. Most of these leases contain renewal options, most involve rent increases and none contain purchase options. The lease term excludes lease renewals because the renewal rents are not at a bargain, there are no economic penalties for the Company to renew the lease, and it is not reasonably certain that the Company will exercise the extension options. The Company elected the accounting policy practical expedients in ASC 842 to: (i) combine associated lease and non-lease components into a single lease component; and (ii) exclude recording short-term leases as right-of-use assets and liabilities on the condensed consolidated balance sheets. Non-lease components, which are not significant overall, are combined with lease components. As of June 30, 2024, the Company’s independent operating subsidiaries leased 29 senior living communities from subsidiaries of Ensign (“Ensign Leases”) under a master lease arrangement. The existing leases with subsidiaries of Ensign have initial terms of between 14 to 20 years. The total amount of rent expense included in rent - cost of services paid to subsidiaries of Ensign was $3,488 and $6,976 for the three and six months ended June 30, 2024, respectively, and $3,333 and $6,749 for the three and six months ended June 30, 2023, respectively. In addition to rent, each of the operating companies are required to pay the following: (1) all impositions and taxes levied on or with respect to the leased properties (other than taxes on the income of the lessor); (2) all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties; (3) all insurance required in connection with the leased properties and the business conducted on the leased properties; (4) all community maintenance and repair costs; and (5) all fees in connection with any licenses or authorizations necessary or appropriate for the leased properties and the business conducted on the leased properties. Fourteen of the Company’s affiliated senior living communities, excluding the communities that are operated under the Ensign Leases (as defined herein), are operated under three separate master lease arrangements. Under these master leases, a breach at a single community could subject one or more of the other communities covered by the same master lease to the same default risk. Failure to comply with Medicare and Medicaid provider requirements is a default under several of the Company’s leases and master leases. With an indivisible lease, it is difficult to restructure the composition of the portfolio or economic terms of the master lease without the consent of the landlord. The components of operating lease cost, are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating Lease Costs: Community Rent—cost of services $ 8,860  $ 8,462  $ 17,515  $ 16,736  Office Rent—cost of services 1,664  1,374  3,393  2,697  Rent—cost of services $ 10,524  $ 9,836  $ 20,908  $ 19,433  General and administrative expense $ 116  $ 104  $ 203  $ 197  Variable lease cost (a) $ 2,239  $ 1,761  $ 4,269  $ 3,491  (a) Represents variable lease cost for operating leases, which costs include property taxes and insurance, common area maintenance, and consumer price index increases, incurred as part of the Company’s triple net lease, and which is included in cost of services for the three and six months ended June 30, 2024 and 2023. The following table shows the lease maturity analysis for all leases as of June 30, 2024, for the years ended December 31: Year Amount 2024 (Remainder) $ 19,680  2025 38,276  2026 36,728  2027 35,616  2028 34,832  Thereafter 260,683  Total lease payments 425,815  Less: present value adjustments (155,729) Present value of total lease liabilities 270,086  Less: current lease liabilities (18,473) Long-term operating lease liabilities $ 251,613  Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used its incremental borrowing rate based on the information available at each lease’s commencement date to determine each lease's operating lease liability. As of June 30, 2024, the weighted average remaining lease term is 12.1 years and the weighted average discount rate is 8.1%.

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INCOME TAXES	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company recorded income tax expense of $1,844 and $1,921 or 23.2% and 39.7% of earnings before income taxes for the three months ended June 30, 2024 and 2023, respectively. The decrease in the effective tax rate is primarily due to not having the impact of a change in the deductibility of equity compensation of certain executives in the current year. The Company recorded income tax expense of $3,603 and $2,828, or 24.4% and 36.5% of earnings before income taxes for the six months ended June 30, 2024 and 2023, respectively. The decrease in the effective tax rate is primarily due to not having the impact of a change in the deductibility of equity compensation of certain executives in the current year.

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DEFINED CONTRIBUTION PLAN	6 Months Ended
	Jun. 30, 2024
Retirement Benefits [Abstract]
DEFINED CONTRIBUTION PLAN	DEFINED CONTRIBUTION PLAN The Company has a 401(k) defined contribution plan (the “401(k) Plan”), whereby eligible employees may contribute up to 90% of their annual basic earnings, subject to applicable annual Internal Revenue Code limits. Additionally, the 401(k) Plan provides for discretionary matching contributions (as defined in the 401(k) Plan) by the Company. The Company expensed matching contributions to the 401(k) Plan of $281 and $572 for the three and six months ended June 30, 2024, and $205 and $418 for the three and six months ended June 30, 2023. The Company has a non-qualified deferred compensation plan (the “DCP”) for executives, other highly compensated employees, independent contractors and non-employee directors. The independent contractors and non-employee directors are otherwise ineligible for participation in the Company's 401(k) plan. The DCP allows participants to defer the receipt of a portion of their base compensation, and further allows certain participants to defer up to 80% of their base salary and bonus compensation or director fees. At the participant’s election, payments can be deferred until a specific date at least one year after the year of deferral or until termination of engagement with the Company and can be paid in a lump sum or in up to ten annual installments. Separate deferral elections can be made for each year, and in limited circumstances, existing payment elections may be changed. The amounts deferred are credited with earnings and losses based upon the actual performance of the deemed investments selected by the participant. The rate of return for each participant varies depending on the specific investment elections made by the participant. Additionally, the plan deposits the employee deferrals into a rabbi trust and the funds are generally invested in individual variable life insurance contracts owned by the Company that are specifically designed to informally fund savings plans of this nature. The Company paid for related administrative costs, which were immaterial during the fiscal years presented. As of June 30, 2024 and 2023, the Company’s deferred compensation liabilities were $2,020 and $968, respectively, in other long-term liabilities on the condensed consolidated balance sheets. The cash surrender value of the individual variable life insurance contracts is based on investment funds that shadow the investment allocations specified by participants in the DCP. As of June 30, 2024 and 2023, the cash surrender value of the company owned life insurance (“COLI”) policies were $2,019 and $950, respectively, and were included as a component of restricted and other assets on the condensed consolidated balance sheets. There are no outstanding loan amounts offset against the cash surrender value of the COLI policies. The losses recorded for the change in cash surrender value were immaterial for each period presented.

v3.24.2.u1

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Regulatory Matters - The Company provides services in complex and highly regulated industries. The Company’s compliance with applicable U.S. federal, state and local laws and regulations governing these industries may be subject to governmental review and adverse findings may result in significant regulatory action, which could include sanctions, damages, fines, penalties (many of which may not be covered by insurance), and even exclusion from government programs. The Company is a party to various regulatory and other governmental audits and investigations in the ordinary course of business and cannot predict the ultimate outcome of any federal or state regulatory survey, audit or investigation. While governmental audits and investigations are the subject of administrative appeals, the appeals process, even if successful, may take several years to resolve and penalties subject to appeal may remain in place during such appeals, which may include suspension, termination, or revocation of participation in governmental programs for the payment of the services the Company provides. The Department of Justice, HHS, CMS, or other federal and state enforcement and regulatory agencies may conduct additional investigations related to the Company's businesses. The Company believes it is presently in compliance in all material respects with all applicable laws and regulations. Cost-Containment Measures - Government and third-party payors have instituted cost-containment measures designed to limit payments made to providers of healthcare services, may propose future cost-containment measures, and there can be no assurance that future measures designed to limit payments made to providers will not adversely affect the Company. Indemnities - From time to time, the Company enters into certain types of contracts that contingently require the Company to indemnify parties against third-party claims. These contracts primarily include (i) certain real estate leases, under which the Company may be required to indemnify property owners or prior operators for post-transfer environmental or other liabilities and other claims arising from the Company’s use of the applicable premises, (ii) operations transfer agreements, in which the Company agrees to indemnify past operators of agencies and communities the Company acquires against certain liabilities arising from the transfer of the operation and/or the operation thereof after the transfer, (iii) certain Ensign lending agreements, and (iv) certain agreements with management, directors and employees, under which the subsidiaries of the Company may be required to indemnify such persons for liabilities arising out of their employment relationships. The terms of such obligations vary by contract and, in most instances, a specific or maximum dollar amount is not explicitly stated therein. Generally, amounts under these contracts cannot be reasonably estimated until a specific claim is asserted. Consequently, because no claims have been asserted, no liabilities have been recorded for these obligations on the Company’s Condensed Consolidated Balance Sheets for any of the periods presented. Litigation - The Company’s businesses involve a significant risk of liability given the age and health of the patients and residents served by its independent operating subsidiaries. The Company, its operating subsidiaries, and others in the industry may be subject to a number of claims and lawsuits, including negligence and professional liability claims, alleging that services provided have resulted in personal injury, elder abuse, wrongful death or other related claims. Healthcare litigation (including class action litigation) is common and is filed based upon a wide variety of claims and theories, and the Company is routinely subjected to these claims in the ordinary course of business, including potential claims related to patient care and treatment, and professional negligence, as well as employment-related claims. Certain of the states where we conduct business, including California and Nevada, recently adopted laws that increase the maximum amount of non-economic damages that may be awarded to a successful plaintiff in a claim for professional negligence or malpractice arising from care provided by our independent operating subsidiaries. These changes in applicable law may also increase the cost of obtaining and maintaining professional liability insurance to pay for the defense of, and any liability arising under, such claims. If there were a significant increase in the number of these claims or an increase in amounts owing should plaintiffs be successful in their prosecution of these claims, this could materially adversely affect the Company’s business, financial condition, results of operations and cash flows. In addition, the defense of these lawsuits may result in significant legal costs, regardless of the outcome, and may result in large settlement amounts or damage awards. In addition to the potential lawsuits and claims described above, the Company also is subject to potential lawsuits under the False Claims Act (the “FCA”) and comparable state laws alleging submission of fraudulent claims for services to any governmental healthcare program (such as Medicare) or commercial payor. A violation may provide the basis for exclusion from federally funded healthcare programs. Such exclusions could have a correlative negative impact on the Company’s financial performance. Some states, including California, Arizona and Texas, have enacted similar whistleblower and false claims laws and regulations. In addition, the Deficit Reduction Act of 2005 created incentives for states to enact anti-fraud legislation modeled on the FCA, for which 18 states have qualified, including California and Texas, where we conduct business. As such, the Company could face scrutiny, potential liability and legal expenses and costs based on claims under state false claims acts in markets in which it conducts business. Under the Fraud Enforcement and Recovery Act (“FERA”) and its associated rules, healthcare providers face significant penalties for the knowing retention of government overpayments, even if no false claim was involved. Providers have an obligation to proactively exercise “reasonable diligence” to identify overpayments and return those overpayments to CMS within 60 days of “identification” or the date any corresponding cost report is due, whichever is later. Retention of overpayments beyond this period may create liability under the FCA. In addition, FERA protects whistleblowers (including employees, contractors, and agents) from retaliation. The Company cannot predict or provide any assurance as to the possible outcome of any litigation. If any litigation were to proceed, and the Company and its operating companies are subjected to, alleged to be liable for, or agree to a settlement of, claims or obligations under federal Medicare statutes, the FCA, or similar state and federal statutes and related regulations, the Company’s business, financial condition and results of operations and cash flows could be materially and adversely affected. Among other things, any settlement or litigation could involve the payment of substantial sums to settle any alleged civil violations, and may also include the assumption of specific procedural and financial obligations by the Company or its independent operating subsidiaries going forward under a corporate integrity agreement and/or other arrangement with the government. Medicare Revenue Recoupments - The Company is subject to probe reviews relating to Medicare services, billings and potential overpayments by Unified Program Integrity Contractors (“UPIC”), Recovery Audit Contractors (“RAC”), Zone Program Integrity Contractors (“ZPIC”), Program Safeguard Contractors (“PSC”), Supplemental Medical Review Contractors (“SMRC”) and Medicaid Integrity Contributors (“MIC”) programs, each of the foregoing collectively referred to as “Reviews.” As of June 30, 2024, 13 of the Company’s independent operating subsidiaries had Reviews scheduled, on appeal or in dispute resolution process, both pre- and post-payment. If an operation fails an initial or subsequent Review, the operation could then be subject to extended Review, suspension of payment, or extrapolation of the identified error rate to all billing in the same time period. The Company, from time to time, receives record requests in Reviews which have resulted in claim denials on previously paid claims. The Company has appealed substantially all denials arising from these Reviews using the applicable appeals process. As of June 30, 2024, and through the filing of this Quarterly Report on Form 10-Q, the Company’s independent operating subsidiaries have responded to the Reviews that are currently ongoing, on appeal or in dispute resolution process. The Company cannot predict the ultimate outcome of any regulatory and other governmental Reviews. While such Reviews are the subject of administrative appeals, the appeals process, even if successful, may take several years to resolve. The costs to respond to and defend such Reviews may be significant and an adverse determination in such Reviews may subject the Company to sanctions, damages, extrapolation of damage findings, additional recoupments, fines, other penalties (some of which may not be covered by insurance), and termination from Medicare programs which may, either individually or in the aggregate, have a material adverse effect on the Company's business and financial condition. From June 2021 to May 2022, one hospice provider number was subject to a Medicare payment suspension imposed by a UPIC. The total amounts suspended was $5,105, which represents all Medicare payments due to the provider number during the suspension. As of June 30, 2024, the remaining amount due from the government payor impacted by the suspension was $246 and was recorded in long-term other assets. The Medicare payment suspension concluded in May 2022, and the UPIC reviewed 107 patient records covering a 10-month period to determine whether, in its view, a Medicare overpayment was made. Based on the results of the review, the UPIC initially alleged sampled and extrapolated overpayments of $5,105, and withheld that amount through continued recoupment of Medicare payments. The Company is pursuing its appeal rights through the administrative appeals process, including contesting the methodology used by the UPIC to perform statistical extrapolation. To date the Company has been successful in appealing most of the previously denied claims. The Company received the refund of previously withheld amounts totaling $4,859 as of June 30, 2024. The Company continues to work through the appeals process for the remaining denied claims and expects to be successful in those appeals. Based on the information currently available to the Company, the Company cannot predict the timing or the ultimate outcome of this review including refunds to be received. Insurance - The Company retains risk for a substantial portion of potential claims for general and professional liability, workers’ compensation and automobile liability. Based on changes in law that increase the maximum damages that may be recovered for professional negligence or malpractice claims in states where we operate, including California and Nevada, the costs of maintaining some of these insurance policies may increase in the future. The Company recognizes obligations associated with these costs, up to specified deductible limits in the period in which a claim is incurred, including with respect to both reported claims and claims incurred but not reported. The general and professional liability insurance has a retention limit of $150 per claim with a $500 corridor as an additional out-of-pocket retention we must satisfy for claims within the policy year before the carrier will reimburse losses. The workers’ compensation insurance has a retention limit of $250 per claim, except for policies held in Texas, Washington and Wyoming which are subject to state insurance and possess their own limits. The Company is self-insured for claims related to employee health, dental, and vision care. To protect itself against loss exposure, the Company has purchased individual stop-loss insurance coverage that insures individual health claims that exceed $350 for each covered person for fiscal year 2024 and fiscal year 2023.

v3.24.2.u1

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income attributable to The Pennant Group, Inc.	$ 5,690	$ 4,906	$ 2,797	$ 1,850	$ 10,596	$ 4,647

v3.24.2.u1

Insider Trading Arrangements	3 Months Ended	6 Months Ended
	Jun. 30, 2024 shares	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Brent J. Guerisoli [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		Brent J. Guerisoli, Chief Executive Officer, entered into a Rule 10b5-1 trading arrangement on May 28, 2024 (the "Rule 10b5-1 Plan"). Mr. Guerisoli’s 10b5-1 Plan provides for the potential sale of up to 2,500 shares of the Company's common stock between August 27, 2024 and May 23, 2025. Additionally, Mr. Guerisoli entered into another Rule 10b5-1 trading arrangement on May 31, 2024 (the "Rule 10b5-1 Plan"). Mr. Guerisoli’s 10b5-1 Plan provides for the potential sale of up to 24,000 shares of the Company's common stock between July 25, 2025 and July 25, 2027.
Name	Brent J. Guerisoli
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 28, 2024
Brent J. Guerisoli Trading Arrangement, Common Stock, 2025 Sale Period [Member] | Brent J. Guerisoli [Member]
Trading Arrangements, by Individual
Expiration Date	May 23, 2025
Arrangement Duration	360 days
Aggregate Available	2,500	2,500
Brent J. Guerisoli Trading Arrangement, Common Stock, 2027 Sale Period [Member] | Brent J. Guerisoli [Member]
Trading Arrangements, by Individual
Expiration Date	July 25, 2027
Arrangement Duration	1153 days
Aggregate Available	24,000	24,000

v3.24.2.u1

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements of the Company (the “Interim Financial Statements”) reflect the Company’s financial position, results of operations, and cash flows of the business. The Interim Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and pursuant to the regulations of the Securities and Exchange Commission (“SEC”). Management believes that the Interim Financial Statements reflect, in all material respects, all adjustments which are of a normal and recurring nature necessary to present fairly the Company’s financial position, results of operations, and cash flows for the periods presented in conformity with GAAP. The results reported in these Interim Financial Statements are not necessarily indicative of results that may be expected for the entire year.
Consolidation	The Company consists of various limited liability companies and corporations established to operate home health, hospice, home care, and senior living operations. The Interim Financial Statements include the accounts of all entities controlled by the Company through its ownership of a majority voting interest.
Recent Accounting Pronouncements	Except for rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws and a limited number of grandfathered standards, the Financial Accounting Standards Board (“FASB”) ASC is the sole source of authoritative GAAP literature recognized by the FASB and applicable to the Company. For any new pronouncements announced, the Company considers whether the new pronouncements could alter previous generally accepted accounting principles and determines whether any new or modified principles will have a material impact on the Company's reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of the Company's financial management and certain standards are under consideration. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires the Company to expand the breadth and frequency of segment disclosures to include additional information about significant segment expenses, the chief operating decision maker and other items, and also requires the annual disclosures on an interim basis. This guidance is effective for annual periods beginning after December 15, 2023, which will be the Company's fiscal year 2024, with early adoption permitted. The Company is currently evaluating the impact of the ASU on its quarterly and annual reports. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires the Company to disclose disaggregated jurisdictional and categorical information for the tax rate reconciliation, income taxes paid and other income tax related amounts. This guidance is effective for annual periods beginning after December 15, 2024, which will be the Company's fiscal year 2025, with early adoption permitted. The Company doesn’t expect it to have any material impacts.
Revenue Recognition	Revenue is recognized when services are provided to the patients at the amount that reflects the consideration to which the Company expects to be entitled from patients and third-party payors, including Medicare, Medicaid, and managed care programs (Commercial, Medicare Advantage and Managed Medicaid plans). The healthcare services in home health and hospice patient contracts include routine services in exchange for a contractual agreed-upon amount or rate. Routine services are treated as a single performance obligation satisfied over time as services are rendered. As such, patient care services represent a bundle of services that are not capable of being distinct within the context of the contract. Additionally, there may be ancillary services which are not included in the rates for routine services, but instead are treated as separate performance obligations satisfied at a point in time, if and when those services are rendered. Revenue recognized from healthcare services is adjusted for estimates of variable consideration to arrive at the transaction price. The Company determines the transaction price based on contractually agreed-upon amounts or rates, adjusted for estimates of variable consideration. The Company uses the expected value method in determining the variable component that should be used to arrive at the transaction price, using contractual agreements and historical reimbursement experience within each payor type. The amount of variable consideration which is included in the transaction price may be constrained, and is included in the net revenue only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. If actual amounts of consideration ultimately received differ from the Company’s estimates, the Company adjusts these estimates, which would affect net service revenue in the period such variances become known. Medicare Revenue Net service revenue is recognized in accordance with the Patient Driven Groupings Model (“PDGM”). Under PDGM, Medicare provides agencies with payments for each 30-day payment period provided to beneficiaries. If a beneficiary is still eligible for care after the end of the first 30-day payment period, a second 30-day payment period can begin. There are no limits to the number of periods of care a beneficiary who remains eligible for the home health benefit can receive. While payment for each 30-day payment period is adjusted to reflect the beneficiary’s health condition and needs, a special outlier provision exists to ensure appropriate payment for those beneficiaries that have the most expensive care needs. The payment under the Medicare program is also adjusted for certain variables including, but not limited to: (a) a low utilization payment adjustment if the number of visits is below an established threshold that varies based on the diagnosis of a beneficiary; (b) a partial payment if the patient transferred to another provider or the Company received a patient from another provider before completing the period of care; (c) adjustment to the admission source of claim if it is determined that the patient had a qualifying stay in a post-acute care setting within 14 days prior to the start of a 30-day payment period; (d) the timing of the 30-day payment period provided to a patient in relation to the admission date, regardless of whether the same home health provider provided care for the entire series of episodes; (e) changes to the acuity of the patient during the previous 30-day payment period; (f) changes in the base payments established by the Medicare program; (g) adjustments to the base payments for case mix and geographic wages; and (h) recoveries of overpayments. The Company adjusts Medicare revenue on completed episodes to reflect differences between estimated and actual payment amounts, an inability to obtain appropriate billing documentation and other reasons unrelated to credit risk. Therefore, the Company believes that its reported net service revenue and patient accounts receivable will be the net amounts to be realized from Medicare for services rendered. In addition to revenue recognized on completed episodes and periods, the Company also recognizes a portion of revenue associated with episodes and periods in progress. Episodes in progress are 30-day payment periods that begin during the reporting period but were not completed as of the end of the period. As such, the Company estimates revenue and recognizes it on a daily basis. The primary factors underlying this estimate are the number of episodes in progress at the end of the reporting period, expected Medicare revenue per period of care or episode of care and the Company’s estimate of the average percentage complete based on the scheduled end of period and end of episode dates. Non-Medicare Revenue Episodic Based Revenue - The Company recognizes revenue in a similar manner as it recognizes Medicare revenue for episodic-based rates that are paid by other insurance carriers, including carriers administering Medicare Advantage programs. These rates can vary based upon the negotiated terms. Non-episodic Based Revenue - Revenue is recognized on an accrual basis based upon the date of service at amounts equal to its established or estimated per visit rates, as applicable. Hospice Revenue Revenue is recognized on an accrual basis based upon the date of service at amounts equal to the estimated payment rates. The estimated payment rates are calculated as daily rates for each of the levels of care the Company delivers. Revenue is adjusted for an inability to obtain appropriate billing documentation or authorizations acceptable to the payor and other reasons unrelated to credit risk. Additionally, as Medicare hospice revenue is subject to an inpatient cap and an overall payment cap, the Company monitors its provider numbers and estimates amounts due back to Medicare if a cap has been exceeded. The Company regularly evaluates and records these adjustments as a reduction to revenue and an increase to other accrued liabilities. Senior Living Revenue The Company has elected the lessor practical expedient within ASC Topic 842, Leases and therefore recognizes, measures, presents, and discloses the revenue for services rendered under the Company’s senior living residency agreements based upon the predominant component, either the lease or non-lease component, of the contracts. The Company has determined that the services included under the Company’s senior living residency agreements each have the same timing and pattern of transfer. The Company recognizes revenue under ASC Topic 606, Revenue from Contracts with Customers for its senior residency agreements, for which it has determined that the non-lease components of such residency agreements are the predominant component of each such contract.

v3.24.2.u1

NET INCOME PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of basic and diluted net income per share	The following table sets forth the computation of basic and diluted net income per share for the periods presented: Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Numerator:   Net income attributable to The Pennant Group, Inc. $ 5,690  $ 2,797  $ 10,596  $ 4,647  Denominator: Weighted average shares outstanding for basic net income per share 30,142  29,809  30,094  29,780  Plus: assumed incremental shares from exercise of options and assumed conversion or vesting of restricted stock(a) 639  384  489  391  Adjusted weighted average common shares outstanding for diluted income per share 30,781  30,193  30,583  30,171  Earnings Per Share: Basic net income per common share $ 0.19  $ 0.09  $ 0.35  $ 0.16  Diluted net income per common share $ 0.18  $ 0.09  $ 0.35  $ 0.15  (a) The diluted per share amounts do not reflect common share equivalents outstanding of 1,375 and 1,788 for the three and six months ended June 30, 2024, and 2,312 and 2,158 for the three and six months ended June 30, 2023, respectively, because of their anti-dilutive effect.

v3.24.2.u1

REVENUE AND ACCOUNTS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of revenue by major payor source	Revenue by payor for the three months ended June 30, 2024 and 2023, is summarized in the following tables: Three Months Ended June 30, 2024 Home Health and Hospice Services Home Health Services Hospice Services Senior Living Services Total Revenue Revenue % Medicare $ 30,389  $ 51,491  $ —  $ 81,880  48.5  % Medicaid 7,400  6,463  12,599  26,462  15.7  Subtotal 37,789  57,954  12,599  108,342  64.2  Managed care 20,335  1,014  —  21,349  12.7  Private and other(a) 7,830  379  30,845  39,054  23.1  Total revenue $ 65,954  $ 59,347  $ 43,444  $ 168,745  100.0  % (a) Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations and management services agreement. Three Months Ended June 30, 2023 Home Health and Hospice Services Home Health Services Hospice Services Senior Living Services Total Revenue Revenue % Medicare $ 23,920  $ 40,294  $ —  $ 64,214  48.5  % Medicaid 2,466  4,682  11,783  18,931  14.3  Subtotal 26,386  44,976  11,783  83,145  62.8  Managed care 15,837  1,417  —  17,254  13.1  Private and other(a) 6,235  169  25,478  31,882  24.1  Total revenue $ 48,458  $ 46,562  $ 37,261  $ 132,281  100.0  % (a) Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations. Revenue by payor for the six months ended June 30, 2024 and 2023, is summarized in the following tables: Six Months Ended June 30, 2024 Home Health and Hospice Services Home Health Services Hospice Services Senior Living Services Total Revenue Revenue % Medicare $ 60,231  $ 98,630  $ —  $ 158,861  48.8  % Medicaid 13,945  12,622  24,961  51,528  15.8  Subtotal 74,176  111,252  24,961  210,389  64.6  Managed care 39,421  2,050  —  41,471  12.7  Private and other(a) 14,240  652  58,908  73,800  22.7  Total revenue $ 127,837  $ 113,954  $ 83,869  $ 325,660  100.0  % (a) Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations and management services agreement. Six Months Ended June 30, 2023 Home Health and Hospice Services Home Health Services Hospice Services Senior Living Services Total Revenue Revenue % Medicare $ 47,296  $ 77,674  $ —  $ 124,970  48.3  % Medicaid 4,657  9,280  22,625  36,562  14.1  Subtotal 51,953  86,954  22,625  161,532  62.4  Managed care 31,769  2,611  —  34,380  13.3  Private and other(a) 12,526  286  50,021  62,833  24.3  Total revenue $ 96,248  $ 89,851  $ 72,646  $ 258,745  100.0  % (a) Private and other payors in the Company’s home health services includes revenue from all payors generated in the Company’s home care operations.
Schedule of accounts receivable	Accounts receivable, net as of June 30, 2024 and December 31, 2023 is summarized in the following table: June 30, 2024 December 31, 2023 Medicare $ 43,640  $ 35,665  Medicaid 14,510  11,578  Managed care 14,814  11,752  Private and other 3,378  2,380  Accounts receivable, gross 76,342  61,375  Less: allowance for doubtful accounts (253) (259) Accounts receivable, net $ 76,089  $ 61,116

v3.24.2.u1

BUSINESS SEGMENTS (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Schedule of financial data combined by business segment	The following tables present certain financial information regarding the Company’s reportable segments, general and administrative expenses are not allocated to the reportable segments and are included in “All Other” for the three and six months ended June 30, 2024 and 2023: Home Health and Hospice Services Senior Living Services All Other Total Three Months Ended June 30, 2024 Revenue $ 125,301  $ 43,444  $ —  $ 168,745  Segment Adjusted EBITDAR from Operations $ 21,214  $ 12,804  $ (10,546) $ 23,472  Three Months Ended June 30, 2023 Revenue $ 95,020  $ 37,261  $ —  $ 132,281  Segment Adjusted EBITDAR from Operations $ 15,681  $ 11,680  $ (7,885) $ 19,476  Home Health and Hospice Services Senior Living Services All Other Total Six Months Ended June 30, 2024 Revenue $ 241,791  $ 83,869  $ —  $ 325,660  Segment Adjusted EBITDAR from Operations $ 40,764  $ 24,815  $ (20,707) $ 44,872  Six Months Ended June 30, 2023 Revenue $ 186,099  $ 72,646  $ —  $ 258,745  Segment Adjusted EBITDAR from Operations $ 30,093  $ 21,921  $ (15,399) $ 36,615
Schedule of reconciliation of total combined adjusted EBITDAR from operations for our reportable segments to combined income from operations	The following table provides a reconciliation of Segment Adjusted EBITDAR from Operations to Condensed Consolidated Income from Operations: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Segment Adjusted EBITDAR from Operations $ 23,472  $ 19,476  $ 44,872  $ 36,615  Less: Depreciation and amortization 1,468  1,214  2,799  2,494  Rent—cost of services 10,524  9,836  20,908  19,433  Other (expense) income (2) 35  83  65  Adjustments to Segment EBITDAR from Operations: Less: Costs at start-up operations(a) (55) 65  (137) 268  Share-based compensation expense and related taxes(b) 1,949  1,354  3,475  2,773  Acquisition related costs and credit allowances(c) 365  72  502  104  Costs associated with transitioning operations(d) 33  538  (595) 585  Unusual, non-recurring or redundant charges(e) 32  226  307  624  Add: Net income attributable to noncontrolling interest 404  125  556  272  Condensed Consolidated Income from Operations $ 9,562  $ 6,261  $ 18,086  $ 10,541  (a) Represents results related to start-up operations. This amount excludes rent and depreciation and amortization expense related to such operations. (b) Share-based compensation expense and related payroll taxes incurred. Share-based compensation expense and related payroll taxes are included in cost of services and general and administrative expense. (c) Non-capitalizable costs associated with acquisitions, credit allowances, and write offs for amounts in dispute with the prior owners of certain acquired operations. (d) During the three months ended March 31, 2023, an affiliate of the Company placed its memory care units into transition and began seeking to sublease the units to an unrelated third party. The amount above represents the net operating impact attributable to the units in transition. The amounts reported exclude rent and depreciation and amortization expense related to such operations and include legal settlement costs associated with one of the entities transitioned to Ensign. (e) Represents unusual or non-recurring charges for legal services, implementation costs, integration costs, and consulting fees in general and administrative and cost of services expenses.

v3.24.2.u1

PROPERTY AND EQUIPMENT—NET (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Schedule of property and equipment, net	Property and equipment, net consist of the following: June 30, 2024 December 31, 2023 Land $ 5,433  $ 96  Building 8,778  1,890  Leasehold improvements 20,296  21,204  Equipment 32,707  29,247  Furniture and fixtures 1,452  1,238  68,666  53,675  Less: accumulated depreciation (27,761) (25,077) Property and equipment, net $ 40,905  $ 28,598

v3.24.2.u1

GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of activity in goodwill by segment	The following table represents activity in goodwill by segment for the six months ended June 30, 2024: Home Health and Hospice Services Senior Living Services Total December 31, 2023 $ 87,372  $ 3,642  $ 91,014  Additions 19,473  —  19,473  June 30, 2024 $ 106,845  $ 3,642  $ 110,487
Schedule of other indefinite-lived intangible assets	Other indefinite-lived intangible assets consist of the following: June 30, 2024 December 31, 2023 Trade name $ 1,385  $ 1,385  Medicare and Medicaid licenses 76,157  66,357  Total $ 77,542  $ 67,742

v3.24.2.u1

OTHER ACCRUED LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Schedule of other accrued liabilities	Other accrued liabilities consist of the following: June 30, 2024 December 31, 2023 Refunds payable $ 1,459  $ 1,566  Deferred revenue 1,706  1,658  Resident deposits 1,854  2,367  Property taxes 789  1,255  Deferred state relief funds 1,162  780  Accrued self-insurance liabilities 6,488  4,392  Other 5,765  3,312  Other accrued liabilities $ 19,223  $ 15,330

v3.24.2.u1

DEBT (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of long-term debt	Long-term debt, net consists of the following: June 30, 2024 December 31, 2023 Revolving Credit Facility $ 83,000  $ 65,000  Less: unamortized debt issuance costs(a) (826) (1,086) Long-term debt, net $ 82,174  $ 63,914  (a) Amortization expense for debt issuance costs was $130 and $261 for the three and six months ended June 30, 2024, respectively, and $130 and $261 for the three and six months ended June 30, 2023, respectively, and is recorded in interest expense, net on the Condensed Consolidated Statements of Income.

v3.24.2.u1

OPTIONS AND AWARDS (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of total share-based compensation expense	Total share-based compensation expense for all Plans for the three and six months ended June 30, 2024 and 2023 was: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Share-based compensation expense related to stock options $ 1,254  984  $ 2,251  $ 1,834  Share-based compensation expense related to Restricted Stock 149  180  242  357  Share-based compensation expense related to Restricted Stock to non-employee directors 448  139  798  479  Total share-based compensation $ 1,851  $ 1,303  $ 3,291  $ 2,670  In future periods, the Company estimates it will recognize the following share-based compensation expense for unvested stock options and unvested Restricted Stock as of June 30, 2024: Unrecognized Compensation Expense Weighted Average Recognition Period (in years) Unvested Stock Options $ 15,396  3.7 Unvested Restricted Stock 1,822  3.1 Total unrecognized share-based compensation expense $ 17,218
Schedule of stock options granted fair value assumptions	The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model with the following weighted average assumptions for stock options granted as of June 30: Grant Year Options Granted Risk-Free Interest Rate Expected Life(a) Expected Volatility(b) Dividend Yield Weighted Average Fair Value of Options 2024 714  4.3  % 6.5 42.6  % —  % $ 9.89  2023 656  4.0  % 6.5 41.6  % —  % $ 6.78  (a) Under the midpoint method, the expected option life is the midpoint between the contractual option life and the average vesting period for the options being granted. This resulted in an expected option life of 6.5 years for the options granted. (b) Because the Company’s equity shares have been traded for a relatively short period of time, expected volatility assumption was based on the volatility of related industry stocks.
Schedule of employee stock option activity	The following table represents the employee stock option activity during the six months ended June 30, 2024: Number of Options Outstanding Weighted Average Exercise Price Number of Options Vested Weighted Average Exercise Price of Options Vested December 31, 2023 2,924  18.79  1,190  $ 19.14  Granted 714  19.96  Exercised (172) 7.63  Forfeited (107) 20.73  Expired (60) 30.58  June 30, 2024 3,299  $ 19.33  1,226  $ 20.42
Schedule of non-vested restricted stock awards	A summary of the status of Pennant’s non-vested Restricted Stock, and changes during the six months ended June 30, 2024, is presented below: Non-Vested Restricted Stock Weighted Average Grant Date Fair Value December 31, 2023 265  $ 14.27  Granted 45  17.73  Vested (55) 17.62  Forfeited (21) 16.26  June 30, 2024 234  $ 13.97

v3.24.2.u1

LEASES (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Schedule of operating lease cost	The components of operating lease cost, are as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating Lease Costs: Community Rent—cost of services $ 8,860  $ 8,462  $ 17,515  $ 16,736  Office Rent—cost of services 1,664  1,374  3,393  2,697  Rent—cost of services $ 10,524  $ 9,836  $ 20,908  $ 19,433  General and administrative expense $ 116  $ 104  $ 203  $ 197  Variable lease cost (a) $ 2,239  $ 1,761  $ 4,269  $ 3,491  (a) Represents variable lease cost for operating leases, which costs include property taxes and insurance, common area maintenance, and consumer price index increases, incurred as part of the Company’s triple net lease, and which is included in cost of services for the three and six months ended June 30, 2024 and 2023.
Schedule of future minimum lease payments	The following table shows the lease maturity analysis for all leases as of June 30, 2024, for the years ended December 31: Year Amount 2024 (Remainder) $ 19,680  2025 38,276  2026 36,728  2027 35,616  2028 34,832  Thereafter 260,683  Total lease payments 425,815  Less: present value adjustments (155,729) Present value of total lease liabilities 270,086  Less: current lease liabilities (18,473) Long-term operating lease liabilities $ 251,613

v3.24.2.u1

DESCRIPTION OF BUSINESS (Details)	Jun. 30, 2024 facility agency
Home Health and Hospice Services
Segment Reporting Information [Line Items]
Number of service providers | agency	117
Senior Living Services
Segment Reporting Information [Line Items]
Number of properties under lease | facility	54

v3.24.2.u1

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Accounting Policies [Abstract]
Deferred state relief funds	$ 1,162		$ 1,162		$ 780
State relief funds, reduction	$ 1,124	$ 1,397	$ 1,577	$ 2,082

v3.24.2.u1

TRANSACTIONS WITH ENSIGN (Details) - Affiliated Entity $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($) property	Jun. 30, 2023 USD ($) property	Jun. 30, 2024 USD ($) property	Jun. 30, 2023 USD ($) property
Related Party Transaction [Line Items]
Cost of services	$ 1,570	$ 1,014	$ 3,070	$ 1,954
Senior Living Services
Related Party Transaction [Line Items]
Number of operating facilities | property	29	29	29	29
Transition Services Agreement
Related Party Transaction [Line Items]
Expenses from transactions with related party	$ 302	$ 192	$ 582	$ 465

v3.24.2.u1

NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Net income attributable to The Pennant Group, Inc.	$ 5,690	$ 4,906	$ 2,797	$ 1,850	$ 10,596	$ 4,647
Denominator:
Weighted average shares outstanding for basic net income per share (in shares)	30,142		29,809		30,094	29,780
Plus: assumed incremental shares from exercise of options and assumed conversion or vesting of restricted stock (in shares)	639		384		489	391
Adjusted weighted average common shares outstanding for diluted income per share (in shares)	30,781		30,193		30,583	30,171
Earnings Per Share:
Basic net income per common share (in dollars per share)	$ 0.19		$ 0.09		$ 0.35	$ 0.16
Diluted net income per common share (in dollars per share)	$ 0.18		$ 0.09		$ 0.35	$ 0.15
Anti-dilutive effect of common equivalent shares outstanding (in shares)	1,375		2,312		1,788	2,158

v3.24.2.u1

REVENUE AND ACCOUNTS RECEIVABLE - NARRATIVE (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Payment terms			Residency agreements are generally for a term of 30 days, with resident fees billed monthly in advance. For residents under reimbursement arrangements with Medicaid, revenue is recorded based on contractually agreed-upon amounts or rates on a per resident, daily basis or as services are rendered.
Customer Concentration Risk | Receivables | Subtotal
Disaggregation of Revenue [Line Items]
Revenue, percent			76.20%		77.00%
Customer Concentration Risk | Revenue
Disaggregation of Revenue [Line Items]
Revenue, percent	100.00%	100.00%	100.00%	100.00%
Customer Concentration Risk | Revenue | Subtotal
Disaggregation of Revenue [Line Items]
Revenue, percent	64.20%	62.80%	64.60%	62.40%

v3.24.2.u1

REVENUE AND ACCOUNTS RECEIVABLE - REVENUE BY MAJOR PAYOR (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 168,745	$ 132,281	$ 325,660	$ 258,745
Revenue | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue %	100.00%	100.00%	100.00%	100.00%
Medicare
Disaggregation of Revenue [Line Items]
Revenue	$ 81,880	$ 64,214	$ 158,861	$ 124,970
Medicare | Revenue | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue %	48.50%	48.50%	48.80%	48.30%
Medicaid
Disaggregation of Revenue [Line Items]
Revenue	$ 26,462	$ 18,931	$ 51,528	$ 36,562
Medicaid | Revenue | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue %	15.70%	14.30%	15.80%	14.10%
Subtotal
Disaggregation of Revenue [Line Items]
Revenue	$ 108,342	$ 83,145	$ 210,389	$ 161,532
Subtotal | Revenue | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue %	64.20%	62.80%	64.60%	62.40%
Managed care
Disaggregation of Revenue [Line Items]
Revenue	$ 21,349	$ 17,254	$ 41,471	$ 34,380
Managed care | Revenue | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue %	12.70%	13.10%	12.70%	13.30%
Private and other
Disaggregation of Revenue [Line Items]
Revenue	$ 39,054	$ 31,882	$ 73,800	$ 62,833
Private and other | Revenue | Customer Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue %	23.10%	24.10%	22.70%	24.30%
Home Health and Hospice Services | Home Health Services
Disaggregation of Revenue [Line Items]
Revenue	$ 65,954	$ 48,458	$ 127,837	$ 96,248
Home Health and Hospice Services | Home Health Services | Medicare
Disaggregation of Revenue [Line Items]
Revenue	30,389	23,920	60,231	47,296
Home Health and Hospice Services | Home Health Services | Medicaid
Disaggregation of Revenue [Line Items]
Revenue	7,400	2,466	13,945	4,657
Home Health and Hospice Services | Home Health Services | Subtotal
Disaggregation of Revenue [Line Items]
Revenue	37,789	26,386	74,176	51,953
Home Health and Hospice Services | Home Health Services | Managed care
Disaggregation of Revenue [Line Items]
Revenue	20,335	15,837	39,421	31,769
Home Health and Hospice Services | Home Health Services | Private and other
Disaggregation of Revenue [Line Items]
Revenue	7,830	6,235	14,240	12,526
Home Health and Hospice Services | Hospice Services
Disaggregation of Revenue [Line Items]
Revenue	59,347	46,562	113,954	89,851
Home Health and Hospice Services | Hospice Services | Medicare
Disaggregation of Revenue [Line Items]
Revenue	51,491	40,294	98,630	77,674
Home Health and Hospice Services | Hospice Services | Medicaid
Disaggregation of Revenue [Line Items]
Revenue	6,463	4,682	12,622	9,280
Home Health and Hospice Services | Hospice Services | Subtotal
Disaggregation of Revenue [Line Items]
Revenue	57,954	44,976	111,252	86,954
Home Health and Hospice Services | Hospice Services | Managed care
Disaggregation of Revenue [Line Items]
Revenue	1,014	1,417	2,050	2,611
Home Health and Hospice Services | Hospice Services | Private and other
Disaggregation of Revenue [Line Items]
Revenue	379	169	652	286
Senior Living Services
Disaggregation of Revenue [Line Items]
Revenue	43,444	37,261	83,869	72,646
Senior Living Services | Medicare
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Senior Living Services | Medicaid
Disaggregation of Revenue [Line Items]
Revenue	12,599	11,783	24,961	22,625
Senior Living Services | Subtotal
Disaggregation of Revenue [Line Items]
Revenue	12,599	11,783	24,961	22,625
Senior Living Services | Managed care
Disaggregation of Revenue [Line Items]
Revenue	0	0	0	0
Senior Living Services | Private and other
Disaggregation of Revenue [Line Items]
Revenue	$ 30,845	$ 25,478	$ 58,908	$ 50,021

v3.24.2.u1

REVENUE AND ACCOUNTS RECEIVABLE - ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounts Receivable [Abstract]
Accounts receivable, gross	$ 76,342	$ 61,375
Less: allowance for doubtful accounts	(253)	(259)
Accounts receivable, net	76,089	61,116
Medicare
Accounts Receivable [Abstract]
Accounts receivable, gross	43,640	35,665
Medicaid
Accounts Receivable [Abstract]
Accounts receivable, gross	14,510	11,578
Managed care
Accounts Receivable [Abstract]
Accounts receivable, gross	14,814	11,752
Private and other
Accounts Receivable [Abstract]
Accounts receivable, gross	$ 3,378	$ 2,380

v3.24.2.u1

BUSINESS SEGMENTS - NARRATIVE (Details)	Jun. 30, 2024 facility agency
Home Health and Hospice Services
Segment Reporting Information [Line Items]
Number of service providers | agency	117
Senior Living Services
Segment Reporting Information [Line Items]
Number of properties under lease | facility	54

v3.24.2.u1

BUSINESS SEGMENTS - FINANCIAL DATA (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting Information [Line Items]
Revenue	$ 168,745	$ 132,281	$ 325,660	$ 258,745
Segment Adjusted EBITDAR from Operations	23,472	19,476	44,872	36,615
Senior Living Services
Segment Reporting Information [Line Items]
Revenue	43,444	37,261	83,869	72,646
Operating Segments | Home Health and Hospice Services
Segment Reporting Information [Line Items]
Revenue	125,301	95,020	241,791	186,099
Segment Adjusted EBITDAR from Operations	21,214	15,681	40,764	30,093
Operating Segments | Senior Living Services
Segment Reporting Information [Line Items]
Revenue	43,444	37,261	83,869	72,646
Segment Adjusted EBITDAR from Operations	12,804	11,680	24,815	21,921
All Other
Segment Reporting Information [Line Items]
Revenue	0	0	0	0
Segment Adjusted EBITDAR from Operations	$ (10,546)	$ (7,885)	$ (20,707)	$ (15,399)

v3.24.2.u1

BUSINESS SEGMENTS - INCOME FROM OPERATIONS (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting [Abstract]
Segment Adjusted EBITDAR from Operations	$ 23,472		$ 19,476		$ 44,872	$ 36,615
Less: Depreciation and amortization	1,468		1,214		2,799	2,494
Rent—cost of services	10,524		9,836		20,908	19,433
Other (expense) income	(2)		35		83	65
Less: Costs at start-up operations	(55)		65		(137)	268
Share-based compensation expense and related taxes	1,949		1,354		3,475	2,773
Acquisition related costs and credit allowances	365		72		502	104
Costs associated with transitioning operations	33		538		(595)	585
Unusual, non-recurring or redundant charges	32		226		307	624
Add: Net income attributable to noncontrolling interest	404	$ 152	125	$ 147	556	272
Condensed Consolidated Income from Operations	$ 9,562		$ 6,261		$ 18,086	$ 10,541

v3.24.2.u1

ACQUISITIONS (Details) $ in Thousands			6 Months Ended
	Aug. 01, 2024 USD ($)	Jan. 01, 2024 USD ($)	Jun. 30, 2024 USD ($) agency community numberOfLivingUnits	Jun. 30, 2023 USD ($) agency community	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Acquire interest in joint venture		$ 11,680
Goodwill			$ 110,487		$ 91,014
Subsequent Event
Business Acquisition [Line Items]
Business combination, purchase price	$ 32,000
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Payments to acquire land and building			10,380
Total acquisition				$ 7,261
Goodwill				4,117
Other indefinite-lived intangible assets				2,012
Equipment and other assets				1,027
Acquisition costs			0	0
Other intangible assets				186
Liabilities assumed				81
Home Health Services | Series of Individually Immaterial Asset Acquisitions
Business Acquisition [Line Items]
Other indefinite-lived intangible assets			1,000	$ 210
Home Health Services | Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of businesses acquired and assets acquisitions | agency				2
Home Health and Hospice Services
Business Acquisition [Line Items]
Goodwill			$ 106,845		87,372
Home Health and Hospice Services | Home Health Services
Business Acquisition [Line Items]
Number of businesses acquired and assets acquisitions | agency			4	3
Home Health and Hospice Services | Home Health Services | Series of Individually Immaterial Asset Acquisitions
Business Acquisition [Line Items]
Number of assets acquired | agency			2	1
Home Health and Hospice Services | Hospice Services
Business Acquisition [Line Items]
Number of businesses acquired and assets acquisitions | agency			2	1
Home Health and Hospice Services | Hospice Services | Series of Individually Immaterial Asset Acquisitions
Business Acquisition [Line Items]
Number of assets acquired | agency			1
Home Health and Hospice Services | Hospice Services | Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of businesses acquired and assets acquisitions | agency				1
Senior Living Services
Business Acquisition [Line Items]
Number of businesses acquired and assets acquisitions | community			3	2
Goodwill			$ 3,642		$ 3,642
Senior Living Services | Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of businesses acquired and assets acquisitions | community			2
Operational Senior Living Units
Business Acquisition [Line Items]
Number of businesses acquired and assets acquisitions | numberOfLivingUnits			261
Joint Venture With John Muir Health | Home Health Joint Venture
Business Acquisition [Line Items]
Ownership interest			60.00%
Sale of noncontrolling interests, net of tax			$ 11,726
Joint Venture With John Muir Health | Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Total acquisition			28,406
Goodwill			19,473
Other indefinite-lived intangible assets			8,800
Equipment and other assets			133
One Home Health Agency And One Hospice Agency Acquired In 2024 | Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Total acquisition			5,000
Goodwill			3,267
Other indefinite-lived intangible assets			1,600
Equipment and other assets			$ 133
One Home Health Agency And One Hospice Agency Acquired In 2024 | Home Health Services | Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of businesses acquired and assets acquisitions | agency			1
One Home Health Agency And One Hospice Agency Acquired In 2024 | Hospice Services | Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of businesses acquired and assets acquisitions | agency			1
Home Care Services Segment | Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of businesses acquired and assets acquisitions | agency				2
Home Care Services Segment | Home Care Agencies
Business Acquisition [Line Items]
Number of businesses acquired and assets acquisitions | agency				2

v3.24.2.u1

PROPERTY AND EQUIPMENT—NET (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 68,666		$ 68,666		$ 53,675
Less: accumulated depreciation	(27,761)		(27,761)		(25,077)
Property and equipment, net	40,905		40,905		28,598
Depreciation	1,468	$ 1,211	2,799	$ 2,486
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	5,433		5,433		96
Building
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,778		8,778		1,890
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	20,296		20,296		21,204
Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	32,707		32,707		29,247
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,452		$ 1,452		$ 1,238

v3.24.2.u1

GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS - ACTIVITY IN GOODWILL (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 91,014
Additions	19,473
Goodwill, ending balance	110,487
Home Health and Hospice Services
Goodwill [Roll Forward]
Goodwill, beginning balance	87,372
Additions	19,473
Goodwill, ending balance	106,845
Senior Living Services
Goodwill [Roll Forward]
Goodwill, beginning balance	3,642
Additions	0
Goodwill, ending balance	$ 3,642

v3.24.2.u1

GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS - INDEFINITE-LIVED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Indefinite-lived Intangible Assets [Line Items]
Other indefinite-lived intangibles	$ 77,542	$ 67,742
Trade name
Indefinite-lived Intangible Assets [Line Items]
Other indefinite-lived intangibles	1,385	1,385
Medicare and Medicaid licenses
Indefinite-lived Intangible Assets [Line Items]
Other indefinite-lived intangibles	$ 76,157	$ 66,357

v3.24.2.u1

GOODWILL AND OTHER INDEFINITE-LIVED INTANGIBLE ASSETS - NARRATIVE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible asset impairments	$ 0	$ 0	$ 0	$ 0

v3.24.2.u1

OTHER ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other Accrued Liabilities, Current [Abstract]
Refunds payable	$ 1,459	$ 1,566
Deferred revenue	1,706	1,658
Resident deposits	1,854	2,367
Property taxes	789	1,255
Deferred state relief funds	1,162	780
Accrued self-insurance liabilities	6,488	4,392
Other	5,765	3,312
Other accrued liabilities	$ 19,223	$ 15,330

v3.24.2.u1

DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Less: unamortized debt issuance costs	$ (826)		$ (826)		$ (1,086)
Long-term debt, net	82,174		82,174		63,914
Amortization of deferred financing fees	130	$ 130	261	$ 261
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Revolving Credit Facility	$ 83,000		$ 83,000		$ 65,000

v3.24.2.u1

DEBT - NARRATIVE (Details) - USD ($)	Jul. 31, 2024	Jun. 12, 2023	Jun. 30, 2024	Feb. 23, 2021
Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing capacity				$ 150,000,000
Revolving Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Borrowing capacity	$ 250,000
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Weighted average interest rate			8.35%
Borrowing availability			$ 62,814,000
Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Margin		0.35%
Revolving Credit Facility | Minimum | Subsequent Event
Debt Instrument [Line Items]
Margin	0.25%
Revolving Credit Facility | Minimum | SOFR
Debt Instrument [Line Items]
Margin		2.25%
Revolving Credit Facility | Minimum | SOFR | Subsequent Event
Debt Instrument [Line Items]
Margin	1.75%
Revolving Credit Facility | Minimum | Base Rate
Debt Instrument [Line Items]
Margin		1.25%
Revolving Credit Facility | Minimum | Base Rate | Subsequent Event
Debt Instrument [Line Items]
Margin	0.75%
Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Margin		0.50%
Revolving Credit Facility | Maximum | Subsequent Event
Debt Instrument [Line Items]
Margin	0.45%
Revolving Credit Facility | Maximum | SOFR
Debt Instrument [Line Items]
Margin		3.25%
Revolving Credit Facility | Maximum | SOFR | Subsequent Event
Debt Instrument [Line Items]
Margin	2.75%
Revolving Credit Facility | Maximum | Base Rate
Debt Instrument [Line Items]
Margin		2.25%
Revolving Credit Facility | Maximum | Base Rate | Subsequent Event
Debt Instrument [Line Items]
Margin	1.75%
Letters of Credit | Line of Credit
Debt Instrument [Line Items]
Letters of credit outstanding			$ 4,186,000

v3.24.2.u1

OPTIONS AND AWARDS - SHARE-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	$ 1,851	$ 1,303	$ 3,291	$ 2,670
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	1,254	984	2,251	1,834
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	149	180	242	357
Restricted Stock Awards | Non-employee Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	$ 448	$ 139	$ 798	$ 479

v3.24.2.u1

OPTIONS AND AWARDS - UNVESTED STOCK OPTIONS AND RESTRICTED STOCK (Details) - The Ensign Plans $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized share-based compensation expense	$ 17,218
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested Stock Options	$ 15,396
Weighted Average Recognition Period (in years)	3 years 8 months 12 days
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested Restricted Stock	$ 1,822
Weighted Average Recognition Period (in years)	3 years 1 month 6 days

v3.24.2.u1

OPTIONS AND AWARDS - NARRATIVE (Details) - The Ensign Plans	6 Months Ended
	Jun. 30, 2024
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	5 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, vesting percent per year	20.00%
Options, expiration period	10 years

v3.24.2.u1

OPTIONS AND AWARDS - OPTIONS GRANTED (Details) - The Ensign Plans - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	714
2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	714
Weighted average fair value of options (in dollars per share)	$ 9.89
2024 | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-Free Interest Rate	4.30%
Expected life	6 years 6 months
Expected volatility	42.60%
Dividend Yield	0.00%
2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)		656
Weighted average fair value of options (in dollars per share)		$ 6.78
2023 | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-Free Interest Rate		4.00%
Expected life		6 years 6 months
Expected volatility		41.60%
Dividend Yield		0.00%

v3.24.2.u1

OPTIONS AND AWARDS - EMPLOYEE STOCK OPTION ACTIVITY (Details) - The Ensign Plans shares in Thousands	6 Months Ended
	Jun. 30, 2024 $ / shares shares	Dec. 31, 2023 $ / shares shares
Number of Options Outstanding
Beginning balance, outstanding (in shares) | shares	2,924
Granted (in shares) | shares	714
Exercised (in shares) | shares	(172)
Forfeited (in shares) | shares	(107)
Expired (in shares) | shares	(60)
Ending balance, outstanding (in shares) | shares	3,299
Weighted Average Exercise Price
Beginning of period, weighted average exercise price (in dollars per share) | $ / shares	$ 18.79
Granted (in dollars per share) | $ / shares	19.96
Exercised (in dollars per share) | $ / shares	7.63
Forfeited (in dollars per share) | $ / shares	20.73
Expired (in dollars per share) | $ / shares	30.58
End of period, weighted average exercise price (in dollars per share) | $ / shares	$ 19.33
Number of options vested (in shares) | shares	1,226	1,190
Weighted average exercise price of options vested (in dollars per share) | $ / shares	$ 20.42	$ 19.14

v3.24.2.u1

OPTIONS AND AWARDS - RESTRICTED STOCK (Details) - The Ensign Plans - Restricted Stock Awards shares in Thousands	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Non-Vested Restricted Stock
Beginning balance, outstanding (in shares) | shares	265
Granted (in shares) | shares	45
Vested (in shares) | shares	(55)
Forfeited (in shares) | shares	(21)
Ending balance, outstanding (in shares) | shares	234
Weighted Average Grant Date Fair Value
Beginning of period, weighted average exercise price (in dollars per share) | $ / shares	$ 14.27
Granted (in dollars per share) | $ / shares	17.73
Vested (in dollars per share) | $ / shares	17.62
Forfeited (in dollars per share) | $ / shares	16.26
End of period, weighted average exercise price (in dollars per share) | $ / shares	$ 13.97

v3.24.2.u1

LEASES - NARRATIVE (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($) property facility arrangement	Jun. 30, 2023 USD ($) property	Jun. 30, 2024 USD ($) property facility arrangement	Jun. 30, 2023 USD ($) property
Lessee, Lease, Description [Line Items]
Weighted average remaining lease term	12 years 1 month 6 days		12 years 1 month 6 days
Weighted average discount rate	8.10%		8.10%
Related Party | Operating Lease, Rent Expense
Lessee, Lease, Description [Line Items]
Fees incurred | $	$ 3,488	$ 3,333	$ 6,976	$ 6,749
Senior Living Services | Related Party
Lessee, Lease, Description [Line Items]
Number of operating facilities | property	29	29	29	29
Number of properties under lease, master lease agreement | facility	14		14
Number of separate master lease arrangements | arrangement	3		3
Senior Living Services | Minimum
Lessee, Lease, Description [Line Items]
Lease term	15 years		15 years
Senior Living Services | Minimum | Related Party
Lessee, Lease, Description [Line Items]
Lease term	14 years		14 years
Senior Living Services | Maximum
Lessee, Lease, Description [Line Items]
Lease term	25 years		25 years
Senior Living Services | Maximum | Related Party
Lessee, Lease, Description [Line Items]
Lease term	20 years		20 years
Home Health and Hospice Services | Minimum
Lessee, Lease, Description [Line Items]
Lease term	1 year		1 year
Home Health and Hospice Services | Maximum
Lessee, Lease, Description [Line Items]
Lease term	11 years		11 years

v3.24.2.u1

LEASES - IMPACT OF NEW LEASES GUIDANCE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Operating Lease Costs:
Variable lease cost	$ 2,239	$ 1,761	$ 4,269	$ 3,491
Cost of Services
Operating Lease Costs:
Operating lease costs	10,524	9,836	20,908	19,433
Cost of Services | Community
Operating Lease Costs:
Operating lease costs	8,860	8,462	17,515	16,736
Cost of Services | Office
Operating Lease Costs:
Operating lease costs	1,664	1,374	3,393	2,697
General and administrative expense
Operating Lease Costs:
Operating lease costs	$ 116	$ 104	$ 203	$ 197

v3.24.2.u1

LEASES - FUTURE MINIMUM LEASE PAYMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases, Under Adoption of ASC 842 [Abstract]
2024 (Remainder)	$ 19,680
2025	38,276
2026	36,728
2027	35,616
2028	34,832
Thereafter	260,683
Total lease payments	425,815
Less: present value adjustments	(155,729)
Present value of total lease liabilities	270,086
Less: current lease liabilities	(18,473)	$ (17,122)
Long-term operating lease liabilities	$ 251,613	$ 248,596

v3.24.2.u1

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 1,844	$ 1,921	$ 3,603	$ 2,828
Effective income tax rate reconciliation, percent	23.20%	39.70%	24.40%	36.50%

v3.24.2.u1

DEFINED CONTRIBUTION PLAN (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) installment	Jun. 30, 2023 USD ($)
Retirement Benefits [Abstract]
Employee contribution (as a percent)			90.00%
Contribution	$ 281	$ 205	$ 572	$ 418
Percentage of compensation			80.00%
Payment deferred (in years)	1 year		1 year
Number of annual installments | installment			10
Accrued other long term liabilities	$ 2,020	968	$ 2,020	968
Cash surrender value of life insurance	$ 2,019	$ 950	$ 2,019	$ 950

v3.24.2.u1

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	1 Months Ended	6 Months Ended	12 Months Ended
	May 31, 2022 agency	Jun. 30, 2024 USD ($) review	Dec. 31, 2023 USD ($)	May 31, 2022 provider agency
Concentration Risk [Line Items]
Number of operating subsidiaries with reviews scheduled | review		13
Suspended payments		$ 5,105
Sampled and extrapolated overpayments		246
Number of patient records under review | agency	107			107
Period of review	10 months
Previously withheld amounts		(4,859)
General and professional liability, retention limit		150
Out-of-pocket retention		500
Workers' compensation, retention limit		250
Hospice Services Segment
Concentration Risk [Line Items]
Number providers | provider				1
Maximum
Concentration Risk [Line Items]
Self insurance, individual coverage limit		$ 350	$ 350

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