Ensign Group Selling Doctors Express

Mission Viejo, Calif.-based Ensign Group (NASDAQ: ENSG  ) is selling its franchised Doctors Express urgent care subsidiary to privately held medical clinic operator American Family Care for an undisclosed sum, the company announced Monday.

Ensign is keeping hold of five urgent care clinics located in greater Seattle, however, and says it in fact plans to expand operations under its Immediate Clinic brand. Chief Executive Officer Christopher Christensen explained the Doctors Express divestiture as necessitated because of the need to spend "considerable investment and time ... to further develop the franchise model." This is time and investment that Ensign Group apparently does not want to commit.

Ensign specializes in skilled nursing, hospice, and rehab care. At the same time as it disposes of the franchised business, the company says it expects its retained and expanded "Immediate Clinic's physician-driven retail healthcare capabilities to enhance Ensign's relationships with hospital systems ... and be accretive to Ensign's existing businesses, while simultaneously diversifying Ensign's payor sources."

As for Doctors Express, that sale is expected to close on April 15.

Shares of Ensign Group responded positively to the news -- both of the company's Immediate Clinic expansion, and of its Doctors Express sale -- by sending Ensign Group shares up 1.2% to close the day at $32.34.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2331130, ~/Articles/ArticleHandler.aspx, 5/24/2015 3:51:52 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!