By Katherine Hamilton

PACS Group said it overstated its revenue for the three months ended on March 31, 2024, and the three and six months ended on June 30, 2024, and will be restating results from those periods.

The holding company, which invests in post-acute healthcare facilities, said Monday it overstated its total revenue by $15 million to $17 million in the quarter ended March 31, 2024, and by $46 million to $48 million in the quarter ended June 30, 2024.

The prior financial statements for those periods should not be relied upon, PACS said.

Revenue from respiratory services and certain other therapy services billed under Medicare Part B should not have been recognized as revenue in the two quarters, PACS said.

PACS said in November of last year an independent audit committee and external counsel were conducting an investigation of third-party allegations. The audit committee is nearing completion of the investigation and has found no basis to question the integrity of PACS's executive team, it said Monday.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

June 16, 2025 16:40 ET (20:40 GMT)

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