Skilled nursing home operator Pacs Group has closed on a deal to acquire the operations of 11 Tennessee nursing homes.
The company said in a news release the deal with CareTrust REIT was completed Dec. 1, with the acquisition of another Tennessee facility's operations expected to close in the first quarter of 2025, subject to applicable closing conditions. Pacs Group did not disclose the names of the 12 facilities or the financial terms of the deal which will expand its operations by approximately 1,300 beds.
Related: Pacs Group founders lose billions as Hindenburg takes aim
Over the past few months, Farmington, Utah-based Pacs Group has acquired the operations of more than 70 nursing homes, assisted living facilities and independent living facilities across nine states in the Northwest, Mid-Atlantic region and South.
Pacs Group has been on a growth trajectory since raising $450 million in an initial public offering in April, and has expanded into 17 states with more than 300 facilities. But the company said last month a federal investigation over fraud allegations was delaying the release of its third-quarter earnings.
Just days before Pacs Group was expected to report quarterly earnings, a report by investment research firm Hindenburg Research alleged the company abused a waiver during the COVID-19 pandemic and inappropriately accessed skilled nursing care Medicare benefits for thousands of patients.
