PACS Group, Inc. (NYSE:PACS) shares traded lower on Wednesday after the company announced the postponement of third-quarter results and disclosure of civil investigative demands from the federal government.
The company reported preliminary results, with occupancy for its ramping and mature facilities standing at 93.9% and 94.5%, respectively, with total facility occupancy at 90.5%, well above the industry average of 77%.
PACS expanded its operations with the acquisition of 56 facilities in six new states, adding 2,889 skilled nursing beds and 1,334 assisted living and independent living units.
The company expects to end the quarter with over $600 million in cash and liquidity.
On November 4, Hindenburg Research released a five-month investigation involving interviews with 18 former employees and competitors and a review of over 900 detailed facility-level cost reports, which uncovered that PACS' "turnaround" strategy is primarily based on systematically exploiting taxpayer-funded healthcare programs.
According to the Hindenburg investigation, PACS exploited a COVID-era waiver to improperly access skilled care Medicare benefits for thousands of patients across its nationwide facility portfolio.
Hindenburg estimates that the scheme accounted for more than 100% of PACS' operating and net income from 2020 to 2023, creating the illusion of legitimate growth and profitability, which facilitated PACS' IPO in early 2024.
Jason Murray, PACS's Chief Executive Officer, stated, "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."
"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."
Price Action: PACS shares are down 36.1% at $18.88 at the last check Wednesday.
Image via Shutterstock
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PACS集团股份有限公司（纽交所：PACS）股价周三下跌，因公司宣布推迟第三季度业绩公布，并披露遭遇来自联邦政府的民事调查要求。
公司报告了初步结果，其逐步和成熟设施的入住率分别达到93.9%和94.5%，总设施入住率为90.5%，远高于行业平均水平77%。
PACS通过收购六个新州的56个设施扩大了业务，新增了2,889张熟练护理床位和1,334个辅助生活和独立生活单元。
公司预计季末现金和流动性资金将超过60000万美元。
11月4日，Hindenburg研究发布了一份为期五个月的调查报告，包括对18名前员工和竞争对手的采访，以及对900多份详细的设施级成本报告的审查，结果发现PACS的"扭亏为盈"策略主要是基于系统性地利用纳税人资助的医疗保健计划。
根据Hindenburg的调查，PACS利用了COVID时代的豁免权来不当获取其全国范围设施组合中数千患者的医疗保险福利。
Hindenburg估计，这一计划占据了PACS从2020年到2023年的经营和净利润的100%以上，营造出合法增长和盈利的假象，从而促成了PACS于2024年初的首次公开募股。
PACS首席执行官杰森·默里表示："我们认为最近第三方的指控是误导的。然而，为了与我们对待患者、经营企业、并与利益相关者互动的高标准一致，公司的审计委员会正在进行对指控的调查，得到了外部律师的帮助。"
我们收到了联邦政府关于公司报销和转介实践的民事调查要求，这可能与本周的第三方报告有关或无关。我们认真对待这类指控，将继续配合政府。
价格走势：PACS股票最新交易价格为18.88美元，下跌了36.1%。
图片来源：shutterstock
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