Providence Group has acquired Plum Healthcare Group, California’s second-largest skilled nursing facility operator, in an effort to expand Providence’s reach in the western United States. The deal includes Plum’s 58 properties that sold for an undisclosed amount, including 57 nursing homes and one assisted/independent living community, plus the real property on ten of the assets. There are 54 facilities in California and four in Nevada. Capital Funding Group provided financing for the deal.
Plum’s average census as of November 5 was 83%, which is an enviable figure for many in the industry. Helping with the transition is the fact that Providence’s C-Suite leadership have worked with Plum in the past and have implied they will focus on integrating Plum into their operations before moving on to new deals. With the acquisition, Providence’s subsidiaries now operate more than 140 skilled nursing facilities in seven states, including California, Kentucky, Missouri, Nevada, Ohio, South Carolina and Texas. The combined company has over 20,000 employees on a consolidated basis.
Its subsidiary, Providence Administrative Consulting Services (PACS), which contracts with facilities to provide back-office administrative support, will provide those services to Plum’s facilities. Also, a majority of the leaders and facilities-based personnel at Plum will continue in their current roles following the merger.
