The Pennant Group (PNTG) Oppenheimer 35th Annual Health Care MedTech and Services Conference summary

Business performance and outlook

• Achieved nearly 30% top-line and over 30% bottom-line growth in 2024, with strong execution on strategic initiatives and leadership development.

• Upsized revolver to $250 million and completed an equity offering, providing ample capital for growth and acquisitions.

• Completed significant acquisitions, notably Signature, adding over $80 million in revenue and expanding presence in the Pacific Northwest.

• Projecting nearly 20% top-line and over 20% bottom-line growth for 2025, with margin improvement expected across home health, hospice, and senior living.

Home health segment

• Strong organic growth in 2024, with high single-digit growth modeled for 2025, driven by aging population and preference for in-home care.

• Medicare Advantage accounts for 31% of home health revenue; payer mix managed locally to optimize outcomes.

• Achieved a 2.5% increase in Medicare Advantage rates in 2024, with half of the mix episodic and half per-visit.

• Over 80% of agencies received positive value-based care rate adjustments for 2023 results, with ongoing focus on quality and patient experience.

Hospice segment

• Growth driven by aging demographics and recent acquisitions, with over 52% of eligible Medicare patients electing hospice care.

• Ability to educate patients across the care continuum supports hospice growth.

• Hospice cap issues mainly affected California operations in 2024; impact expected to normalize in 2025 and 2026.