PACS Group, Inc. (NYSE: PACS)

PACS Group, Inc. is a leading post-acute healthcare company primarily focused on delivering high-quality skilled nursing care through a portfolio of independently operated facilities. The company provides senior care, assisted living, and independent living options in some of its communities. As of December 31, 2025, PACS Group operated 321 post-acute care facilities across 17 states, serving over 31,700 patients daily.

PACS Group generates revenue primarily from payments by third-party payors, including Medicare and Medicaid, which accounted for 33.7% and 40.5% of routine revenue for the year ended December 31, 2025, respectively. The company also receives revenue from managed care, private pay, and other payor sources for skilled nursing and related services provided at its facilities.

The company operates through the following segments: Mature facilities, Ramping facilities, and New facilities.

• Mature facilities are defined as facilities purchased more than 36 months prior to the measurement date. As of December 31, 2025, PACS Group operated 150 Mature facilities that generated $2.9 billion in skilled nursing services revenue for the year ended December 31, 2025, with an average QM Star rating of 4.4, an occupancy rate of 95%, and a skilled mix by revenue of 56%.

• Ramping facilities are defined as facilities purchased within 18 to 36 months prior to the measurement date. As of December 31, 2025, PACS Group operated 102 Ramping facilities that generated $1.1 billion in skilled nursing services revenue for the year ended December 31, 2025, with an average QM Star rating of 4.1, an occupancy rate of 86%, and a skilled mix by revenue of 42%.

• New facilities are defined as facilities purchased less than 18 months prior to the measurement date. As of December 31, 2025, PACS Group operated 69 New facilities that generated $1.2 billion in skilled nursing services revenue for the year ended December 31, 2025, with an average QM Star rating of 3.5, an occupancy rate of 81%, and a skilled mix by revenue of 38%.

PACS Group is one of the largest skilled nursing facility operators in the United States based on the number of facilities, as reported by CMS. The company differentiates itself through its locally led, centrally supported operating model, which empowers local facility administrators to make autonomous clinical and operational decisions while providing centralized support via PACS Services. PACS Group’s competitive strengths include superior clinical quality reflected in above-industry average QM Star ratings and occupancy rates, a meritocratic leadership culture, a robust suite of technology-enabled services, and a disciplined acquisition playbook focused on transforming underperforming facilities into higher-value short-term transitional care centers.

PACS Group serves patients requiring post-acute care, including individuals recovering from surgery, strokes, joint replacements, and acute infections who need 24-hour inpatient services after hospital discharge. The company’s primary patient demographic consists of adults aged 65 and older, with a focus on higher acuity, short-term transitional care patients. The company also works with referring providers such as hospitals and health systems, payors including Medicare and Medicaid, and interdisciplinary clinical teams at each facility.