Courtesy of PACS Group
PACS Group is taking over more nursing homes while the beds it already runs are getting fuller.
The company added 43 healthcare operations after September ended: 32 nursing homes in Florida on October 1, followed by 10 nursing homes and one assisted living facility in Texas on November 1. The deals bring its network to 398 operations across 21 states, according to its third-quarter results.
For families choosing care after a hospital stay, that means a larger company behind more local facilities. But these are takeovers of existing operations, not 43 newly built homes or a promise of more beds. The announcement does not establish that a family’s bill will fall or that every acquired home will deliver better care.
More patients in existing beds
PACS reported overall nursing-home occupancy of 90.2% for the third quarter. At 284 nursing homes it had operated since the beginning of 2025, occupancy reached 91.3%, up from 89.3% a year earlier. Revenue at that same group rose 6.4%.
Those figures describe the quarter through September 30, before the Florida and November Texas closings. The Florida deal alone brought 4,049 skilled nursing beds into the network.
Management sees room to fill more beds at newer acquisitions, which enter the company below the performance of its established operations. That is its investment case, not a guaranteed outcome. Buying a home is one step; staffing it, improving care and earning hospital referrals are the work that follows.
A bigger business, a higher forecast
Third-quarter revenue increased 11.5% to $1.50 billion. Net income rose 16.2% to $60.8 million, or 37 cents a diluted share. Adjusted earnings were 63 cents a share, a separate measure that excludes certain costs and is not the same as reported profit.
PACS raised its full-year revenue forecast to $5.95 billion to $6.05 billion, from $5.75 billion to $5.85 billion. It also lifted its forecast for adjusted earnings before interest, taxes, depreciation and amortization to $685 million to $695 million, from $640 million to $660 million.
The updated forecast includes about $5 million from retroactive Ohio quality incentive payments received in October. That is a payment for earlier performance, not new recurring revenue from filling a bed.
Growth still has to translate into care
CEO Jason Murray said the company’s focus is on supporting local leaders and improving clinical outcomes as it expands. McKnight’s reporting on Wednesday’s earnings call described management’s emphasis on turning around acquired facilities.
For residents and their families, the question is simpler than the earnings math: who is providing the care inside their particular home? A larger network and fuller beds measure business growth. They do not, by themselves, answer that question.
JBizNews Desk | Salt Lake City
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