By Rob Curran

Shares of nursing-home operator PACS Group slid after it delayed the release of its quarterly results, and said it was investigating allegations made in a critical report about the firm's practices from influential short-selling firm Hindenburg Research.

PACS, of Farmington, Utah, postponed the release of its earnings statement for the third quarter ended in September, pledging to disclose the update "as soon as practicable."

"PACS Group operates in a highly regulated industry where compliance is of the utmost importance," said Chief Executive Jason Murray, in a statement. "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."

The Hindenburg report accused PACS of "scamming taxpayers." In the report, Hindenburg claimed that interviews with former employees and competitors revealed systematic abuse of the Medicare system, with thousands of patients gaining "inappropriate" access to federally-funded insurance coverage.

In a preview of third-quarter results, PACS group said facilities occupancy was at 90.5%.

PACS said it acquired 56 facilities during the quarter, expanding into six new states so that it now has facilities in 15 states. The expansion added 2,889 skilled nursing beds and 1,334 assisted living and independent living units to its portfolio.

PACs estimated it had $600 million of cash and available liquidity on hand at the end of the quarter.

Shares of PACS Group slid 22% to $22.99 premarket.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

November 06, 2024 08:34 ET (13:34 GMT)

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