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PACS Group completed a 32-nursing-home acquisition in Florida after the third quarter, adding 4,049 skilled nursing beds and entering a new state. It also added Texas facilities and reported higher third-quarter revenue, net income and occupancy; the company said acquired properties had lower occupancy and skilled mix than its mature facilities.
PACS Group has expanded into Florida with the acquisition of 32 nursing homes, adding 4,049 skilled nursing beds, and added 10 nursing homes and one assisted living facility in Texas effective Nov. 1. The acquisitions accompany year-over-year growth in the company’s third-quarter results, as PACS pursues further expansion while acknowledging that newer facilities have lower occupancy and skilled mix than its established operations.
The Florida deal closed after the third quarter, according to Skilled Nursing News’ account of PACS’ earnings call. It gives the Utah-based operator a presence in a new state. CEO Jason Murray said the group intends to build regional leadership, clinical support and operating resources around the facilities’ local teams. The source does not identify the seller or disclose the transaction’s purchase price.
In Texas, PACS added 10 nursing homes and one assisted living facility on Nov. 1. Separately, the company had closed on 31 of 34 nursing home operations in the previously announced Eduro Healthcare transaction: 20 in Texas and 11 across South Dakota, North Dakota, New Mexico and Montana. The report does not provide a closing date or further details for the three operations not included in the 31.
PACS reported $1.5 billion in third-quarter revenue, up 11.5% from $1.31 billion in the same quarter of 2025. Net income was $60.8 million, an increase of $8.5 million, or 16.2%, from $52.3 million. Diluted earnings per share rose to 37 cents from 32 cents. The company also reported adjusted earnings per share of 63 cents, above the cited analyst estimate of 58 cents. Across 284 nursing homes, revenue grew 6.4% year over year and occupancy reached 91.3%, according to the report.
Expansion Adds a Florida Platform
The Florida purchase creates a substantial base in a new state rather than adding only a small number of sites. PACS says that presence will allow it to organize regional leadership and clinical support around local teams. For residents and staff, the practical effects will depend on how the operator integrates the homes and whether their staffing, occupancy and clinical performance change.
The strategy also has financial implications. PACS is combining acquisitions with growth at existing facilities, while its executives say they see a large acquisition pipeline. The company’s reported revenue, income and occupancy gains provide a snapshot of its current performance, but do not establish that recently acquired homes will reach the same results as mature facilities. New properties had lower occupancy and less favorable skilled mix, Murray said.
For the broader nursing home sector, the move adds to a period of portfolio consolidation and raises questions about operators’ capacity to integrate large groups of facilities while sustaining care and staffing standards. PACS executives described clinical capability and integration capacity as factors in deal selection. The source does not provide facility-level quality or staffing results for the newly acquired homes, so the effect of this expansion on care cannot yet be evaluated from the reported figures.
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PACS Builds on Earlier Deals
The latest acquisitions follow PACS’ previously announced Eduro transaction. The company had completed the transfer of 31 of 34 operations associated with that deal, expanding its footprint across five states. The Florida acquisition is a separate step and marks PACS’ entry into that state, while the Nov. 1 additions deepen its presence in Texas.
Murray said PACS chooses markets based on regulatory conditions, occupancy trends and labor availability. He characterized Florida’s regulatory and reimbursement environment as more favorable than in past years and cited the state’s occupancy and skilled mix. Chief Operating Officer Josh Jergensen described Texas and Florida as favorable labor markets, pointing to low agency-staff use as an indicator that workers are available. These are executives’ assessments; the report does not include independent comparisons or detailed state-level data to verify them.
PACS said about 250 of its nursing homes, or 78.9%, held four- or five-star ratings from the Centers for Medicare & Medicaid Services. That figure applies to the company’s broader portfolio as reported and should not be read as a rating for each newly acquired facility. The company has also reported ongoing government investigations. Murray said their timing and outcomes cannot be predicted.
“Entering Florida with 32 facilities gives us a meaningful presence from the outset and an opportunity to build regional leadership, clinical support and operating resources around a substantial group of local teams.”
— Jason Murray, PACS Group CEO, during the company’s third-quarter earnings call
Integration and Investigations Remain Open
The source does not disclose the purchase price, seller, financing arrangements or detailed closing terms for the Florida acquisition or the Nov. 1 Texas additions. It also does not give facility-by-facility occupancy, skilled mix, staffing or CMS ratings for the acquired homes. PACS said new properties lowered certain consolidated averages, but did not quantify the impact of each transaction.
It remains unclear how quickly the Florida and Texas facilities could improve their occupancy or skilled mix, and whether they will achieve the performance levels of mature PACS homes. The company’s past acquisition experience and stated operating plans are not a guarantee of future results. The report also provides no details on the scope or specific subject matter of the ongoing government investigations. Murray said the company cannot forecast their timing or outcome.
Integration and Deal Screening Ahead
PACS says it will focus on integrating the new facilities and using local leadership and clinical support to improve their operations. The next measurable indicators will include occupancy, skilled mix, staffing and financial performance in future company updates. PACS has not given a timetable for reaching particular targets at the acquired homes.
Executives said the acquisition pipeline remains active, but Jergensen said PACS is screening opportunities carefully, including moderately performing, distressed or underperforming assets. The company’s next reported results should show how its enlarged portfolio is contributing, while updates from PACS or relevant authorities may clarify the progress and outcome of the government investigations.
Key Questions
How many nursing homes did PACS acquire in Florida?
PACS completed the acquisition of 32 Florida nursing homes after the third quarter, adding 4,049 skilled nursing beds and entering the state.
What did PACS add in Texas?
Effective Nov. 1, PACS added 10 nursing homes and one assisted living facility in Texas. The company also closed on 20 Texas operations as part of the separate Eduro transaction, according to the report.
How did PACS perform in the third quarter?
PACS reported $1.5 billion in revenue, up 11.5% year over year, and net income of $60.8 million, up 16.2%. Occupancy across its 284 nursing homes was 91.3%.
Are the newly acquired homes already performing at PACS’ established levels?
Not according to the information reported. CEO Jason Murray said newer properties had lower occupancy and less favorable skilled mix than mature facilities. PACS says it aims to improve those measures, but it has not reported a timetable or facility-level results.
What is known about the government investigations involving PACS?
PACS CEO Jason Murray said the investigations are ongoing and that the company cannot predict their timing or outcomes. The report does not provide details about their scope or expected next steps.
Source: skillednursingnews.com
