Providence to Transition Ownership of Skilled Nursing and Assisted Living Care Centers

Sale will ensure continued access to these vital services in Providence communities

RENTON, Wash., Dec. 17, 2024 – Providence, a not-for-profit health system serving the Western U.S., today announced plans to sell 10 skilled nursing and assisted living care ministries, operating in eight locations in Alaska, Oregon, Washington and California.  

The ownership transition will help to ensure continued access to care at a time when nursing homes across the country are struggling to keep up with persistent challenges, including a national shortage of caregivers, the rising cost of pharmaceuticals, supplies and equipment, and reimbursement from payers that has not kept up with inflation.  

Nationally, these challenges have led to the closure of more than 770 nursing homes since the pandemic. Providence has not been immune to these pressures.

“Though we have made important strides, we have been unable to invest in and modernize our skilled nursing and assisted living facilities to the level our communities and caregivers deserve and in a way that best positions these facilities to meet growing needs. We believe a new owner that brings the expertise, resources and scale needed to transform and sustain these care centers will help to ensure our local communities have continued access to these vital facilities into the future,” said Dianna Reely, chief of residential services for Providence Home and Community Care.

After an exhaustive search and a thoughtful, ethical discernment, Providence is confident in the selection of The Ensign Group, Inc., and its affiliates (collectively, “Ensign”), a values-aligned, high-quality organization and a proven leader in post-acute care and senior living. Ensign is the parent company of the EnsignTM  group of companies, which invests in and provides skilled nursing and senior living services, rehabilitative and health care services and real estate.  

Ensign shares Providence’s commitment to serving all people with dignity and compassion and maintains quality ratings that exceed the national average. Ensign is also committed to caregiver retention, which is essential for ensuring a successful transition and thriving operations.  

The transitioning care centers include: 

• Providence Extended Care, Providence Transitional Care Center and Providence Horizon House in Alaska  
• St. Elizabeth Care Center in North Hollywood, Calif.  
• Benedictine Nursing Center and Benedictine Orchard House Assisted Living in Oregon  
• Marianwood in Issaquah, Wash., Mother Joseph Care Center in Olympia, Wash., and St. Joseph Care Center and Emilie Court in Spokane, Wash.  

While Ensign will operate the majority of the transitioning care centers, they will consult with a third-party, Hill Valley Healthcare, LLC, to operate Mother Joseph Care Center and Emilie Court.   

Providence and Ensign will begin the regulatory review process and expect the acquisition to be finalized in March 2025 for care centers in Alaska, Washington and Oregon and in Q3 of 2025 for California.