PACS Group, Inc. Reports $4.1 Billion Revenue and $55.3 Million Net Income for Fiscal Year 2024

**PACS Group, Inc. Reports $4.1 Billion in Revenue for Fiscal Year 2024**

PACS Group, Inc., a leading post-acute healthcare company, announced total revenue of $4.1 billion for the year ended December 31, 2024. This represents a significant increase compared to the $3.1 billion reported for the year ended December 31, 2023, reflecting a compound annual growth rate (CAGR) of 29.9% over the last three years. The company's net income for 2024 was $55.3 million, a decrease from the $112.9 million reported in the previous year. Adjusted EBITDA for the year reached $279.5 million, compared to $237.5 million in 2023.

The company's financial performance was influenced by several factors, including changes in payor mix and patient acuity. Medicare accounted for 33.8% of routine revenue in 2024, while Medicaid contributed 40.4%. These figures compare to 38.6% and 37.6%, respectively, in 2023. Total operating expenses for the year amounted to $4.0 billion, up from $2.9 billion in the prior year, driven by increased costs of services, rent, and administrative expenses. The company's skilled mix by nursing patient days was 29% for the year ended December 31, 2024.

PACS Group's growth strategy has focused on acquiring underperforming skilled nursing facilities and transforming them into higher-acuity, short-term transitional care facilities. As of December 31, 2024, the company operated 314 post-acute care facilities across 17 states, serving over 30,100 patients daily. The company classifies facilities into three categories based on time since acquisition: Mature, Ramping, and New. Mature facilities, defined as those purchased more than 36 months prior, had an average CMS Quality Measures (QM) Star rating of 4.3 and an occupancy rate of 94%. New facilities, purchased less than 18 months prior, had an average QM Star rating of 3.3 and an occupancy rate of 83%.

Looking ahead, PACS Group intends to expand its presence in existing and new markets through strategic acquisitions and facility builds. The company also plans to leverage operational improvements within its existing footprint to drive higher occupancy and increase its skilled mix. As of December 31, 2024, the company had total long-term liabilities of $3.5 billion. The company is currently in a state of forbearance with the lenders associated with its Amended and Restated 2023 Credit Facility and is in active discussions with the Required Lenders regarding the terms of an amendment and waiver to the facility.