PACS Group to Acquire Operations of 32 Florida Skilled Nursing Facilities
PACS Group, Inc. has announced plans to significantly expand its presence in the U.S. post-acute healthcare market through the acquisition of operations associated with 32 skilled nursing facilities across Florida. The transaction represents a major geographic expansion for the company and is expected to establish PACS Group as a substantial post-acute care provider across several of Florida’s key healthcare markets.
Under definitive agreements announced by the company, subsidiaries of PACS Group will acquire the operations of the 32 skilled nursing facilities, which will be leased from subsidiaries of Omega Healthcare Investors, Inc., one of PACS Group’s existing real estate investment trust landlords.
Together, the facilities represent 4,049 licensed skilled nursing beds. The locations are already integrated into their respective local healthcare networks, giving PACS an opportunity to enter Florida with an established operating footprint rather than building a new presence from the ground up.The transaction is expected to close during the fourth quarter, subject to customary closing conditions and contingencies.
Strategic Expansion Into Florida
The planned acquisition marks an important step in PACS Group’s broader growth strategy. Florida represents a significant healthcare market with substantial demand for post-acute services, and the addition of 32 facilities will give PACS an immediate statewide presence.
According to PACS Chairman and CEO Jason Murray, the company views Florida as an attractive market that fits its long-term strategy of expanding into regions where demographic trends and healthcare demand create opportunities to improve care delivery.
“Entering a new state and expanding into a dynamic new market is an exciting opportunity for PACS,” Murray said. “Florida represents an attractive, high-growth market that aligns with our long-term strategy of expanding into areas with strong demographic demand and opportunities to enhance care delivery.”
Murray added that PACS intends to work closely with local teams and communities while building on the operational foundation already established at the facilities.
The company plans to bring its organizational culture, operating principles and commitment to localized care to the newly acquired facilities while maintaining a focus on the needs of residents and the communities they serve.
4,049 Skilled Nursing Beds Added
The 32 Florida facilities collectively have 4,049 licensed skilled nursing beds, giving PACS a substantial operating footprint from the outset of its Florida expansion.Skilled nursing facilities play an important role within the broader healthcare system by providing post-acute and long-term care services to individuals who may require continued medical attention, rehabilitation or support following hospitalization or other healthcare interventions.
Because the facilities are already deeply integrated into local healthcare networks, PACS expects to benefit from established relationships and existing community connections.The acquisition will create a statewide network that spans important healthcare corridors throughout Florida. The scale of the transaction also provides PACS with an opportunity to apply its operating model across a large group of facilities while retaining a local focus.
Rather than treating each facility as an isolated operation, PACS intends to support the locations through its broader organizational infrastructure while continuing to rely on local leadership.
Building on a Locally Led Operating Model
A key element of PACS Group’s strategy is its locally led, centrally supported operating model.Under this approach, local leaders are given significant responsibility for managing day-to-day operations and responding to the needs of residents, employees and communities. Central support functions provide resources, infrastructure and expertise intended to help local teams succeed.
PACS President and COO Josh Jergensen said the company looks forward to partnering with the newly acquired facilities and their leadership teams.“We’re excited to partner with these facilities and their local leaders, and to leverage our locally led, centrally supported model as we integrate the operations following the anticipated closing later this year,” Jergensen said.
He described the Florida transaction as part of the company’s disciplined approach to expansion. Rather than pursuing growth solely based on the number of facilities acquired, PACS seeks opportunities where its operating model can support existing local leadership and help facilities continue delivering quality care.
Jergensen said PACS intends to support the teams already working at the facilities while building on the foundations that are already in place.
Expanding PACS’ Southern Footprint
The Florida acquisition will complement PACS Group’s existing operations in several other Southern states.Before the planned Florida expansion, PACS operated facilities in Texas, South Carolina, Tennessee and Kentucky. The company currently has 25 facilities in Texas, 27 in South Carolina, 12 in Tennessee and seven in Kentucky.
Adding 32 Florida locations will significantly increase the company’s presence across the South and provide a new geographic platform for future growth.
Florida’s large and growing healthcare market makes the state particularly relevant to companies operating in post-acute care. PACS expects the new network to provide opportunities to strengthen relationships with healthcare partners and develop its presence across multiple communities.The acquisition also diversifies PACS’ geographic footprint by adding a major new state to its operating network.
Focus on Local Communities
Although the Florida transaction represents a large-scale corporate expansion, PACS has emphasized the importance of maintaining a local approach to care.The company says its strategy is based on the belief that healthcare is fundamentally local and that strong outcomes depend on empowered leadership within individual communities.
This philosophy is particularly relevant in skilled nursing and post-acute care, where relationships between facilities, residents, families, physicians, hospitals and other healthcare providers can influence the overall patient experience.By working with existing local leaders, PACS aims to preserve institutional knowledge and community relationships while providing additional organizational resources.
Murray said the company looks forward to supporting the Florida teams and building upon the strong operational foundation already established within the facilities.
Integration Following Closing
The transaction is expected to close in the fourth quarter, assuming the completion of customary conditions and contingencies.Following the anticipated closing, PACS will begin integrating the operations into its broader organization. Integration is expected to involve collaboration between PACS leadership, local facility teams and the company’s centralized support functions.
The company has indicated that its operating model is designed to allow local leaders to remain closely connected to their communities while benefiting from centralized resources.A successful integration will be important to maintaining continuity for residents and employees while allowing PACS to introduce its operational systems and support capabilities.
Because the facilities already have established operations, the company will be able to focus on supporting and strengthening existing capabilities rather than establishing entirely new facilities.
PACS Completes Additional Eduro Healthcare Acquisitions
Alongside the Florida announcement, PACS Group also provided an update on its previously announced acquisition of facilities operated by Eduro Healthcare.The company announced that it had closed on an additional 11 facilities owned and operated by Eduro Healthcare. These closings follow the completion of the acquisition of 20 Eduro facilities in August.
With the latest transactions completed, PACS has now closed on 31 of the 34 skilled nursing facilities included in the previously announced Eduro transaction.The 34 facilities collectively represent 3,633 nursing beds.
The remaining three buildings are still pending closing and remain subject to customary conditions and contingencies.The completed Eduro transactions further expand PACS Group’s geographic footprint and bring the company into three additional states: New Mexico, North Dakota and South Dakota.
PACS Network Reaches 355 Buildings
The completed Eduro acquisitions have increased the number of PACS-affiliated buildings to 355.The expansion into New Mexico, North Dakota and South Dakota represents another significant geographic development for the company. Combined with the planned Florida expansion, the transactions demonstrate PACS Group’s continued efforts to build a broader national post-acute healthcare network.
The Eduro acquisition and Florida transaction also illustrate two complementary aspects of PACS’ growth strategy: entering new markets and expanding within markets where the company sees opportunities to create value through its operating model.The addition of facilities across multiple states can provide greater scale while allowing PACS to maintain its emphasis on local leadership.
Strengthening Access to Post-Acute Care
The company’s expansion comes at a time when post-acute healthcare remains an important component of the U.S. healthcare system.
Skilled nursing facilities serve patients with a wide range of needs, including those recovering from acute hospital stays, individuals requiring rehabilitation services and residents who need longer-term skilled care.As healthcare providers seek to improve transitions between hospitals and post-acute settings, skilled nursing operators can play an important role in coordinating care and supporting recovery.
PACS Group’s expansion into Florida and additional states through the Eduro transaction provides the company with a larger platform from which to participate in these healthcare networks.The facilities acquired through both transactions already have established local operations, allowing PACS to build on existing relationships and infrastructure.
A Broader National Growth Strategy
The Florida and Eduro transactions collectively highlight PACS Group’s strategy of expanding its national presence through acquisitions while maintaining a locally focused approach to healthcare delivery.The Florida acquisition will add 32 facilities and 4,049 licensed beds, while the Eduro transaction has already added 31 completed facilities and 3,633 beds, with three additional buildings pending closing.
Together, the transactions represent a substantial expansion of PACS’ operating network.For the Florida facilities, the company will work with local leaders and teams following the anticipated closing. For the Eduro facilities already acquired, PACS is integrating the operations into its existing network while supporting local teams.
PACS Group’s planned entry into Florida and continued expansion through the Eduro acquisition demonstrate the company’s ambitions to build a larger presence in the post-acute healthcare sector.The addition of 32 Florida facilities will give PACS a statewide network encompassing more than 4,000 licensed skilled nursing beds. The company’s existing operations in Texas, South Carolina, Tennessee and Kentucky will provide a broader Southern footprint, while the completed Eduro facilities extend PACS’ reach into New Mexico, North Dakota and South Dakota.
The company’s leadership continues to emphasize a strategy centered on local decision-making supported by centralized resources. That approach is intended to allow individual facilities to remain responsive to their communities while benefiting from the scale and capabilities of a larger organization.For PACS, the expansion is not simply about increasing the number of facilities in its portfolio. The company says its goal is to identify markets where strong local leadership and its operating model can work together to improve care and outcomes.
As the Florida transaction moves toward its anticipated fourth-quarter closing, PACS will prepare to integrate the 32 facilities and their teams into its growing network. At the same time, the company continues working toward completion of the remaining three Eduro facility closings.
The combination of these transactions could further strengthen PACS Group’s position within the U.S. post-acute care market and provide the company with an increasingly broad geographic platform for future growth.
With 355 PACS-affiliated buildings following the latest Eduro closings, and a further 32 Florida operations expected to join the network pending completion of the transaction, the company is continuing its expansion while maintaining its stated focus on localized care, empowered leadership and community-based healthcare delivery.
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