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PACS Group Closes Acquisition of Operations at 8 Facilities in Pennsylvania, Including Real Estate on 4

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PACS Group (NYSE: PACS) has announced the acquisition of 8 skilled nursing facilities in western Pennsylvania through its independently operated subsidiaries. The facilities, located in Pittsburgh, Bedford, Bethel Park, Monroeville, and McMurray, comprise 1,199 skilled nursing beds. Four facilities will be leased from CareTrust REIT (NYSE: CTRE), while PACS subsidiaries acquired the real estate of the remaining four. This expansion marks PACS's entry into Pennsylvania, its 17th state of operation, with a focus on bringing their post-acute care model to the Greater Pittsburgh area.

Il gruppo PACS (NYSE: PACS) ha annunciato l'acquisizione di 8 strutture di nursing specializzate nella Pennsylvania occidentale attraverso le sue filiali operative indipendenti. Le strutture, situate a Pittsburgh, Bedford, Bethel Park, Monroeville e McMurray, comprendono 1.199 letti per assistenza specializzata. Quattro strutture saranno affittate da CareTrust REIT (NYSE: CTRE), mentre le filiali di PACS hanno acquisito il patrimonio immobiliare delle restanti quattro. Questa espansione segna l'ingresso di PACS in Pennsylvania, il suo 17° stato di operazione, con l'obiettivo di portare il loro modello di assistenza post-acuta nella Grande Pittsburgh.

El grupo PACS (NYSE: PACS) ha anunciado la adquisición de 8 instalaciones de enfermería especializadas en el oeste de Pennsylvania a través de sus subsidiarias operativas independientes. Las instalaciones, ubicadas en Pittsburgh, Bedford, Bethel Park, Monroeville y McMurray, comprenden 1,199 camas de enfermería especializada. Cuatro instalaciones serán alquiladas a CareTrust REIT (NYSE: CTRE), mientras que las subsidiarias de PACS adquirieron el patrimonio inmobiliario de las otras cuatro. Esta expansión marca la entrada de PACS en Pennsylvania, su 17° estado de operación, con un enfoque en llevar su modelo de atención post-aguda al área metropolitana de Pittsburgh.

PACS 그룹(NYSE: PACS)은 독립적으로 운영되는 자회사를 통해 서부 펜실베이니아에서 8개의 전문 요양 시설을 인수했다고 발표했습니다. 이 시설들은 피츠버그, 베드포드, 베델 파크, 먼로빌과 맥머리 내에 위치하고 있으며, 1,199개의 전문 요양 침대를 보유하고 있습니다. 네 개의 시설은 CareTrust REIT(NYSE: CTRE)로부터 임대될 것이며, PACS 자회사는 나머지 네 개의 부동산을 인수했습니다. 이번 확장은 PACS가 펜실베이니아에 진입하는 것으로, 이는 17번째 운영 주이며, 그들의 후속 치료 모델을 피츠버그 대도시 지역에 제공하려는 초점을 두고 있습니다.

Le groupe PACS (NYSE: PACS) a annoncé l'acquisition de 8 établissements de soins infirmiers spécialisés dans l'ouest de la Pennsylvanie par le biais de ses filiales indépendantes. Les établissements, situés à Pittsburgh, Bedford, Bethel Park, Monroeville et McMurray, comprennent 1.199 lits de soins spécialisés. Quatre établissements seront loués à CareTrust REIT (NYSE: CTRE), tandis que les filiales de PACS ont acquis l'immobilier des quatre autres. Cette expansion marque l'entrée de PACS en Pennsylvanie, son 17ème état d'opération, avec l'objectif d'apporter leur modèle de soins post-aigus dans la région métropolitaine de Pittsburgh.

Die PACS-Gruppe (NYSE: PACS) hat den Erwerb von 8 spezialisierten Pflegeeinrichtungen im westlichen Pennsylvania durch ihre unabhängig betriebenen Tochtergesellschaften bekannt gegeben. Die Einrichtungen befinden sich in Pittsburgh, Bedford, Bethel Park, Monroeville und McMurray und umfassen 1.199 Pflegebetten. Vier Einrichtungen werden von CareTrust REIT (NYSE: CTRE) gemietet, während die Tochtergesellschaften von PACS das Immobilienvermögen der verbleibenden vier erworben haben. Diese Expansion markiert den Eintritt von PACS in Pennsylvania, dem 17. Bundesstaat, in dem das Unternehmen tätig ist, mit dem Ziel, ihr Modell der nach-akuten Versorgung in der Metropolregion Pittsburgh einzuführen.

Positive
  • Expansion into Pennsylvania as 17th state of operation
  • Strategic acquisition of 1,199 skilled nursing beds
  • Mixed model of real estate ownership and leasing showing flexible growth strategy
  • Geographic diversification in the Greater Pittsburgh market
Negative
  • None.

Insights

This strategic acquisition marks a significant expansion for PACS, adding 1,199 skilled nursing beds across 8 facilities in Pennsylvania. The deal structure is particularly noteworthy, combining both leased operations (4 facilities from CareTrust REIT) and outright real estate acquisitions (4 facilities), demonstrating a balanced approach to capital allocation. The expansion into Pennsylvania as their 17th state indicates strong geographic diversification and market penetration strategy.

The Greater Pittsburgh market presents substantial growth potential in the post-acute care sector, with an aging demographic and strong healthcare infrastructure. The mixed lease/purchase model helps optimize capital efficiency while maintaining operational control. This acquisition should contribute meaningfully to PACS's revenue stream and market presence in the northeastern United States.

The acquisition strategically positions PACS in the lucrative western Pennsylvania healthcare market, particularly around Pittsburgh's metropolitan area. This region has a higher-than-average elderly population and strong healthcare networks, making it an attractive market for skilled nursing facilities. The portfolio's size of 1,199 beds provides immediate scale advantages and operational synergies.

The partnership with CareTrust REIT for four facilities demonstrates strong institutional backing and validates the market opportunity. The diverse location spread across Pittsburgh, Bedford, Bethel Park, Monroeville and McMurray creates a robust regional network that can capture various patient demographics and referral patterns.

FARMINGTON, Utah--(BUSINESS WIRE)-- PACS Group, Inc. (NYSE: PACS) (“PACS” or the “Company”) announced today that independently operated subsidiaries of the Company have acquired the operations of 8 skilled nursing facilities in Pennsylvania. The facilities are located in the western Pennsylvania cities of Pittsburgh, Bedford, Bethel Park, Monroeville, and McMurray, and collectively comprise 1,199 skilled nursing beds. Four of the facilities are being leased from an affiliate of CareTrust REIT (NYSE: CTRE), and subsidiaries of the Company acquired the real estate of the remaining four facilities.

“We’re excited to enter into Pennsylvania — a new market for PACS and our 17th state — and we’re pleased to welcome these 8 facilities, as well as their staffs and residents, to the PACS family,” said Jason Murray, PACS Chairman and CEO. “We see tremendous opportunity to bring our model of post-acute care to the Greater Pittsburgh area, and provide top-level care to the communities the facilities serve."

Derick Apt, PACS CFO, noted: “This acquisition illustrates an important element of our growth model in action. We consider acquisitions, both large and small, lease and purchase, when we believe the PACS operating model can thrive in this kind of market — and in new markets — and we look forward to seeing the good that these facilities can provide to their communities in the years to come.”

About PACS™

PACS Group, Inc. is a holding company investing in post-acute healthcare facilities, professionals, and ancillary services. Founded in 2013, PACS Group is one of the largest post-acute platforms in the United States. Its independent subsidiaries operate 284 post-acute care and senior living facilities across 16 states, serving over 27,000 patients daily. References herein to the consolidated “Company,” as well as the use of the terms “we,” “us,” “our,” “its” and similar verbiage, refer to PACS Group, Inc. and its consolidated subsidiaries, taken as a whole. PACS Group, Inc. and its subsidiaries that are not licensed healthcare providers do not provide healthcare services to patients, residents or any other person, and do not direct or control the provision of services provided or the operations of those provider subsidiaries. All healthcare services are provided solely by its applicable subsidiaries that are licensed healthcare providers, under the direction and control of licensed healthcare professionals in accordance with applicable law. More information about PACS is available at https://IR.pacs.com.

Investors: IR@pacs.com

Media: Brooks Stevenson

VP Corporate Communication

262 N. University Avenue

Farmington, UT 84025

T: 385-988-3596

brooks.stevenson@pacs.com

https://www.pacs.com

https://ir.pacs.com

Source: PACS Group, Inc.

FAQ

How many facilities did PACS Group acquire in Pennsylvania in 2024?

PACS Group acquired operations of 8 skilled nursing facilities in western Pennsylvania, with a total capacity of 1,199 skilled nursing beds.

Which cities in Pennsylvania are the new PACS facilities located?

The newly acquired PACS facilities are located in Pittsburgh, Bedford, Bethel Park, Monroeville, and McMurray, all in western Pennsylvania.

How many of the new PACS Pennsylvania facilities are owned vs leased?

Of the 8 facilities, PACS subsidiaries acquired the real estate of 4 facilities, while the other 4 are being leased from CareTrust REIT.

How many states does PACS Group now operate in after the Pennsylvania expansion?

With the addition of Pennsylvania, PACS Group now operates in 17 states.

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