Nursing home operator Pacs Group is delaying the release of its third quarter earnings as it faces a government investigation into fraud allegations, the company said Wednesday.
Pacs Group CEO Jason Murray said in a news release, the company would release financial results for the three months ending Sept. 30 after the company’s audit committee and an external counsel investigate allegations made in a Hindenburg Research report that Pacs Group was “scamming” the government and investors.
Related: Pacs Group shares sink after Hindenburg report
Pacs Group was scheduled to release third quarter earnings Thursday after the close of trading.
Murray said in the release the company has been contacted by the federal government regarding its reimbursement and referral practices.
“We take these types of allegations seriously and will continue to cooperate with the government,” Murray said. “We have confidence in our systems and controls, and we believe our strong operating metrics in the quarter and significant liquidity underscore the fundamental strength of our business and balance sheet."
Pacs Group shares plummeted on the news of the investigation and delayed earnings release.
Hindenburg Research has alleged that the Farmington, Utah-based company abused a waiver during the COVID-19 pandemic and inappropriately accessed skilled nursing care Medicare benefits for thousands of patients. The report was based on a five-month investigation that included interviews with former employees and competitors, according to Hindenburg.
Pacs Group is one of the nation’s largest operators of skilled nursing and senior living facilities in the country, with 284 properties across 16 states.
The company raised $450 million when it went public in April. It has been acquiring skilled nursing facilities and announced last week it acquired eight nursing homes in Pennsylvania through subsidiaries.
