PACS Group Provides Preliminary Third Quarter Operational Metrics
PACS Group has postponed its Q3 2024 financial results release amid an ongoing Audit Committee investigation into third-party allegations regarding reimbursement and referral practices. The company reports strong preliminary Q3 operational metrics, including 90.5% total facilities occupancy versus 77% industry average. Notable achievements include 183 facilities (76%) achieving 4-5 star CMS QM ratings, and significant expansion with 56 new facilities across six states, adding 2,889 skilled nursing beds and 1,334 assisted living units. The company expects to end Q3 with over $600 million in cash and available liquidity.
Il Gruppo PACS ha rinviato la pubblicazione dei risultati finanziari del terzo trimestre 2024 a causa di un'indagine in corso da parte del Comitato di Revisione relativa a segnalazioni di terze parti riguardanti pratiche di rimborso e raccomandazione. L'azienda riporta forti metriche operative preliminari per il terzo trimestre, inclusa una occupazione totale delle strutture del 90,5% rispetto al 77% della media del settore. Realizzazioni significative includono 183 strutture (76%) che hanno ottenuto valutazioni CMS QM da 4 a 5 stelle, e una notevole espansione con 56 nuove strutture in sei stati, aggiungendo 2.889 posti letto in assistenza specializzata e 1.334 unità di assistenza abitativa. L'azienda prevede di chiudere il terzo trimestre con oltre 600 milioni di dollari in liquidità disponibile.
El Grupo PACS ha pospuesto la publicación de sus resultados financieros del tercer trimestre de 2024 en medio de una investigación del Comité de Auditoría sobre alegaciones de terceros en relación con prácticas de reembolso y referencia. La empresa informa sobre métricas operativas preliminares sólidas para el tercer trimestre, incluyendo una ocupación total de instalaciones del 90,5% en comparación con el 77% de la media del sector. Logros notables incluyen 183 instalaciones (76%) que alcanzaron calificaciones CMS QM de 4 a 5 estrellas, y una expansión significativa con 56 nuevas instalaciones en seis estados, añadiendo 2.889 camas de enfermería especializada y 1.334 unidades de vivienda asistida. La empresa espera cerrar el tercer trimestre con más de 600 millones de dólares en efectivo y liquidez disponible.
PACS 그룹은 제3자에 대한 환급 및 소개 관행과 관련된 주장에 대한 감사 위원회의 조사 진행 중에 2024년 3분기 재무 결과 발표를 연기했습니다. 이 회사는 3분기 운영 지표가 급증했다고 보고하며, 전체 시설 이용률이 90.5%로 업계 평균 77%보다 높은 수치를 기록하고 있습니다. 주목할 만한 성과로는 183개 시설(76%)이 CMS QM 평점에서 4-5 스타를 달성했으며, 6개 주에서 56개 새로운 시설이 증가하여 2,889개의 전문 간호 침대와 1,334개의 지원 주택 유닛을 추가했습니다. 이 회사는 3분기 종료 시 6억 달러 이상의 현금 및 가용 유동성을 보유할 것으로 예상하고 있습니다.
Le groupe PACS a reporté la publication de ses résultats financiers du troisième trimestre 2024 en raison d'une enquête en cours du comité d'audit sur des allégations de tiers concernant des pratiques de remboursement et de recommandation. L'entreprise fait état de solides indicateurs opérationnels préliminaires pour le troisième trimestre, y compris un taux d'occupation total des installations de 90,5% par rapport à la moyenne sectorielle de 77%. Parmi les réalisations notables, 183 installations (76%) ont obtenu des évaluations CMS QM de 4 à 5 étoiles, et une expansion significative avec 56 nouvelles installations dans six États, ajoutant 2 889 lits de soins spécialisés et 1 334 unités de logement assisté. L'entreprise s'attend à terminer le troisième trimestre avec plus de 600 millions de dollars en liquidités disponibles.
Die PACS-Gruppe hat die Veröffentlichung ihrer finanziellen Ergebnisse für das 3. Quartal 2024 aufgeschoben, während eine laufende Untersuchung des Prüfungsausschusses zu Drittvorwürfen bezüglich Erstattungs- und Empfehlungspraktiken führt. Das Unternehmen berichtet von starken vorläufigen Betriebskennzahlen für das 3. Quartal, darunter eine Gesamtbelegung von 90,5% im Vergleich zu 77% Branchen-Durchschnitt. Zu den bemerkenswerten Errungenschaften gehören 183 Einrichtungen (76%), die zwischen 4 und 5 Sternen in den CMS QM-Bewertungen erzielt haben, und eine bedeutende Expansion mit 56 neuen Einrichtungen in sechs Bundesstaaten, die 2.889 Pflegebetten und 1.334 betreute Wohneinheiten hinzuzufügt. Das Unternehmen erwartet, das 3. Quartal mit über 600 Millionen Dollar an Bargeld und verfügbarer Liquidität abzuschließen.
- 90.5% facility occupancy rate, significantly above 77% industry average
- 76% of facilities achieved 4-5 star CMS QM ratings
- Major expansion with 56 new facilities across 6 states
- Over $600 million expected in cash and available liquidity
- High occupancy rates in ramping (93.9%) and mature (94.5%) facilities
- Postponement of Q3 2024 financial results release
- Ongoing federal investigation into reimbursement and referral practices
- Subject to civil investigative demands from federal government
Insights
The postponement of financial results and ongoing investigation into third-party allegations raise significant red flags. The civil investigative demands from federal authorities regarding reimbursement and referral practices are particularly concerning for a healthcare company. However, there are some positive operational metrics to consider:
- Strong occupancy rates of
90.5% vs industry average of77% - Substantial portfolio expansion with 56 new facilities across 6 states
- Healthy liquidity position of
$600 million - Quality metrics showing
76% of facilities achieving 4-5 star CMS ratings
The combination of regulatory scrutiny and delayed financials creates significant near-term uncertainty, despite solid operational performance. Investors should carefully monitor the investigation's outcome as it could materially impact the company's future performance and valuation.
The multiple regulatory investigations and delayed financial reporting represent material legal and compliance risks. The civil investigative demands regarding reimbursement and referral practices could potentially lead to significant penalties if violations are found. Healthcare fraud investigations often result in substantial settlements and can trigger shareholder lawsuits.
While management emphasizes their compliance track record and internal controls, the Audit Committee's investigation and involvement of external counsel suggests the allegations warrant serious examination. The combination of third-party allegations and government scrutiny increases legal exposure and regulatory risk. The timeline for resolution remains unclear, creating prolonged uncertainty for investors.
Postpones Third Quarter 2024 Financial Results Conference Call
“PACS Group operates in a highly regulated industry where compliance is of the utmost importance,” said Jason Murray, PACS’s Chief Executive Officer. “We believe recent third-party allegations are misleading. However, in line with our commitment to holding ourselves to a high standard – in how we serve our patients, operate our business, and engage with stakeholders – the Company’s Audit Committee, with assistance from external counsel, is conducting an investigation of the allegations. Given the industry we operate in, we’re subject to various governmental surveys and payment audits in the ordinary course of business and are proud of our compliance track record. We’ve received civil investigative demands from the federal government regarding the Company’s reimbursement and referral practices that may or may not be related to this week’s third-party report. We take these types of allegations seriously and will continue to cooperate with the government. We have confidence in our systems and controls, and we believe our strong operating metrics in the quarter and significant liquidity underscore the fundamental strength of our business and balance sheet. We remain focused on our mission to revolutionize the delivery, leadership, and quality of post-acute care.”
Preliminary Third Quarter 2024 Select KPIs
-
PACS had 183 facilities, or
76% , of its skilled nursing portfolio achieve a 4 or 5 star CMS QM rating. -
The Company’s ramping and mature facilities saw
93.9% and94.5% occupancy, respectively. Total Facilities occupancy was90.5% , compared to an industry average of77% . -
The Company’s ramping and mature facilities saw
31.2% and32.1% skilled mix, respectively. - PACS acquired 56 facilities located throughout six new states, expanding the Company’s operations to 15 states and adding 2,889 skilled nursing beds and 1,334 assisted living and independent living units to its portfolio.
-
The Company expects to have ended the quarter with more than
$600 million
About PACS Group
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
Forward-Looking Statements
This press release contains, and other communications of the Company may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,” “outlook,” “forecast,” “target,” “trend,” “plan,” “goal,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Statements concerning the Company’s future are forward-looking statements, and are based on management’s current expectations, assumptions and beliefs about the Company’s business, financial performance, operating results, the industry in which we operate and possible future events. These statements include, but are not limited to, statements regarding the Company’s anticipated growth prospects and future operating and financial performance, including guidance. Forward-looking statements convey the Company’s expectations, intentions, or forecasts about future events, circumstances, results, or aspirations. Forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions, which may change over time and many of which are beyond the Company’s control, and that could cause the Company’s actual results to materially and adversely differ from those expressed in any forward-looking statement, including our dependence on reimbursement from third-party payors and the impact of changes in the acuity mix of patients in our facilities and changes in payor mix and payment methodologies and new cost containment initiatives; the outcome of any ongoing government or internal investigations; failure to be reimbursed for all services for which each facility bills; increased competition for, or shortage of, nurses, nurse assistants or other skilled personnel; state efforts to regulate or deregulate the healthcare services industry or the construction expansion, or acquisition of healthcare facilities; numerous risks related to the expiration of COVID-19 PHE and surrounding wind-down and uncertainty; failure to attract patients and residents to compete effectively with other healthcare providers; risks associated with our review and audit of the care delivery, recordkeeping and billing processes of our operating subsidiaries; risks associated with litigation; our reliance on information technology; our inability to complete future facility or business acquisitions at attractive prices or at all; risks associated with undertaking acquisitions; risks associated with leased real property; our reliance on payments from third-party payors, including Medicare, Medicaid and other governmental healthcare programs and private insurance organizations; reforms to the
These documents are available in the Investor Relations section of the Company’s website at www.pacs.com (information on the website is not incorporated by reference into this presentation and should not be considered part of this document).
You should not place undue reliance on forward-looking statements. The information in this press release is provided as of today’s date only, and, except as required by federal securities law, we do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or for any other reason after today.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105226997/en/
Investors: IR@pacs.com
Media: Brooks Stevenson
VP Corporate Communication
262 N. University Avenue
T: 385-988-3596
brooks.stevenson@pacs.com
https://www.pacs.com
https://ir.pacs.com
Source: PACS Group, Inc.
FAQ
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