Question · Q3 2025
Ben Hendricks asked how local market referral and payer relationships fared during the audit process, and if any changes were made with key sources. He also inquired if operational changes from the audit have altered M&A target selection, specifically balancing deep turnaround opportunities versus already well-performing facilities.
Answer
Jason Murray (CEO) explained that the locally led, centrally supported model allowed administrators to adapt to local market needs, and strong census numbers indicated PACS remained the provider of choice, demonstrating the model's resilience. He confirmed that relationships remained strong. Jason Murray stated that the company's disciplined M&A evaluation process, involving an investment committee, has not changed. He affirmed that PACS will continue to pursue deep turnaround opportunities, like the Colorado example, where their model can transform struggling facilities clinically and financially, deploying resources to improve quality metrics in a disciplined manner.
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