SALT LAKE CITY, UTAH — The CEO of PACS Group, a major nursing home operator with 323 facilities across 17 states, told investors this week that the company has become stronger following a federal investigation into its billing practices that began more than a year ago.
Jason Murray, CEO of the Utah-based nursing home chain, stated during the Oppenheimer 36th Annual Healthcare MedTech & Services Conference that the organization has transformed through the crisis. The internal investigation has concluded, though the government inquiry remains active, according to Murray's remarks reported by Skilled Nursing News.
The investigation began after a November 2024 report from an institutional short seller raised concerns about potential irregularities in the company's billing practices, as reported in the coverage. PACS responded by launching a comprehensive 14-month internal investigation led by its board of directors alongside outside legal counsel while simultaneously cooperating with government inquiries.
According to Murray's statements at the conference, the government investigation has proceeded routinely without introducing new risks or hindering the company's operational or financial performance. He indicated that the scope and focus of the government's inquiry have remained consistent throughout the process.
"The government inquiry remains ongoing, but it has progressed normally and has not hindered the company's operational or financial momentum," Murray stated, according to the report. Company executives told investors they are eager to reach resolution but acknowledge they must work within the government's timeline.
Mark Hancock, co-founder and interim CFO of PACS, joined Murray at the conference to discuss the company's business model and growth trajectory. The executives described how they developed what they termed a "locally led, centrally supported" operating structure based on their own backgrounds as nursing home administrators.
Company Growth and Performance
PACS has experienced significant expansion since its founding in 2013, when the company owned just two facilities in Southern California. By 2026, the organization had grown to operate 323 facilities across 17 states, according to company data shared at the conference.
The company reported total revenue of $5.29 billion in 2025, representing approximately 30% growth year over year, as reported in the coverage. PACS executives attributed part of this growth to the company's early focus on serving higher-acuity patients in nursing home settings.
According to company metrics shared at the investor conference, PACS facilities maintain an average rating of 4.4 stars on Medicare's Five-Star Quality Rating System. The company reported overall occupancy exceeding 89% in 2025, with "mature" facilities — those owned for three or more years — achieving occupancy rates near 95%.
Business Model and Expansion Strategy
PACS categorizes its facilities into three phases: "new" for the first 18 months, "ramping" from months 19-36, and "mature" after three or more years of ownership. This classification system reflects the company's approach to acquiring underperforming facilities and implementing its operational model.
Company executives told investors that PACS continues to see substantial deal flow opportunities despite completing an unusually high number of acquisitions in 2024. Hancock stated the company remains "opportunistic" and disciplined, focusing on acquiring underperforming long-term care facilities that align with the PACS strategy.
With approximately 3% market share in the nursing home industry, executives indicated they see significant potential for continued expansion, according to statements reported at the conference.
Federal regulations require nursing homes to maintain accurate billing records and comply with Medicare and Medicaid documentation requirements. The Centers for Medicare & Medicaid Services conducts oversight of skilled nursing facilities to ensure compliance with federal health and safety standards.
Resources for Families
Families with concerns about billing practices or care quality at nursing homes can contact their state's Long-Term Care Ombudsman program. The National Long-Term Care Ombudsman Resource Center can be reached at 1-800-677-1116 or online at ltcombudsman.org.
Residents and families can also file complaints directly with their state health department or review facility inspection reports and quality ratings on Medicare's Care Compare website at medicare.gov/care-compare.
💬 Join the Discussion
Comments are moderated. Please keep discussions respectful and relevant to nursing home care quality.