Leaders at the Pennant Group (NASDAQ: PNTG) are pleased with the progress on integrating former Amedisys home health locations, which were acquired in a $147 million deal that closed in October 2025.
Some “choppiness” is inevitable as the integration proceeds, and this has informed Pennant’s approach to setting 2026 financial guidance, but “the transition is progressing well,” COO John Gochnour said Thursday on the company’s Q4 2025 earnings call.
The locations are concentrated in the Southeast and were sold as a condition of Amedisys being acquired by UnitedHealth Group (NYSE: UNH). They are being transitioned in waves; Gochnour expects the process to be completed by October 2026. The transaction encompassed 54 locations and included some assets that previously were operated by LHC Group.
“The reception we’ve had in the Southeast has been encouraging,” Gochnour said. “We inherited and have already attracted additional talented leaders in the field and in our new Nashville service center. And these teams are genuinely eager to harness Pennant’s locally driven model. These new operations have joined clusters with seasoned and successful Pennant operations, and so the building blocks of peer accountability that make our model work are in place.”
While the addition of the Amedisys locations contributed to gaudy year-over-year increases in revenue and home health admissions, Pennant’s executives also touted the same-store growth. Same-store Medicare admissions increased 8.2% and Medicare revenue per episode increased 3.7% compared to Q4 2024.
Overall, 2025 was an “exceptional year” for Pennant, CEO Brent Guerisoli said on the earnings call, noting that the company met or exceeded the midpoint of its financial guidance while also achieving historic growth – not only through the Amedisys transaction but with other deals, including the acquisition of Signature Healthcare at Home.
Pennant is based in Eagle, Idaho. Its independent operating subsidiaries provide services across more than 120 home health and hospice agencies and more than 50 senior living communities.
Implications for hospital partnerships, M&A
In addition to providing updates on the integration progress, Pennant executives addressed other implications of bringing the former Amedisys and LHC Group locations into the portfolio.
One of the former LHC assets is involved in a joint venture with the University of Tennessee Health System. This JV was an attractive component of the deal, said Gochnour.
“It gives us an opportunity with a premier acute partner to collaborate, to share data, to share information, to ensure the seamless processing of transitions of care, to make sure that the patient experience is top notch,” he said.
Pennant’s approach to operations – which is highly focused on finding and developing strong local leadership – is consistent for all locations, regardless of whether they are involved in a health system JV, Guerisoli said.
Indeed, Pennant’s core mission is to “create life-changing opportunities for local leaders,” and this will continue to guide the company’s decisions, he emphasized. But the University of Tennessee JV so far has affirmed that acute care partnerships will be part of the go-forward strategy as Pennant continues to grow.
And the leadership team is bullish on its opportunities to increase market share, particularly in the Southeast. The Amedisys acquisition was intended to create a platform for growth in the region, with the service center established in Tennessee able to provide support for this growth.
“We anticipate that the Southeast will become an area of strength for us, and that we can grow significantly there,” Guerisoli said. “And we’ve seen it already as we’ve incorporated these operations – we’ve had a significant number of folks that we’ve been able to add to the team, others that have reached out to us, and there is an ample opportunity for us to grow.”
Pennant’s positive sentiment is due in part to the wave of consolidation in recent years, in which several other large home health providers were acquired by payers. Against this backdrop, Pennant stands out as an independent provider with a locally-focused operating model.
“We think that gives us a competitive advantage … so that there is an opportunity to gain market share over where this business was when we acquired it,” Gochnour said. “And that’s part of the compelling growth opportunity that we see just in these assets, but also as we expand in the Southeast.”
Even as they are eager to seize opportunities for growth, Pennant’s executive team is prioritizing the integration of assets acquired last year before embarking on any significant dealmaking.
“We are always disciplined in our approach, but we will be even more selective on the home health and hospice front in the first half of 2026 as we focus on ensuring our recently acquired operations are on firm footing,” Gochnour said.
The post Pennant Gains Traction Integrating Amedisys Assets, Eyes Market Share Expansion appeared first on Home Health Care News.







