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    Calvin Sternick • JPMorgan Chase & Co.

    Calvin Sternick's questions to Pacs Group Inc (PACS) leadership

    Calvin Sternick's questions to Pacs Group Inc (PACS) leadership • Q1 2024

    Question

    Calvin Sternick inquired about the rate environment, asking how the preliminary Medicare rate notice compared to internal expectations and what trends the company is observing for Medicaid rates across the states in which it operates.

    Answer

    President and COO Josh Jergensen responded that the preliminary Medicare rate was higher than what was modeled, which could help push results toward the higher end of the company's guidance. He also noted healthy rate increases from most state Medicaid programs, including an upcoming increase in one key state, suggesting a stronger rate environment than the conservative long-term averages used in their forecasting.

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    Calvin Sternick's questions to Pacs Group Inc (PACS) leadership • Q1 2024

    Question

    Calvin Sternick of JPMorgan Chase & Co. asked for commentary on the rate environment, specifically how the preliminary Medicare rate notice compared to internal expectations and for any notable trends in state Medicaid rates.

    Answer

    President and COO Joshua Jergensen responded that the proposed Medicare rate was higher than what PACS had modeled, providing potential upside to guidance. He also noted healthy rate increases from most state Medicaid programs and highlighted a specific upcoming rate increase in an East Coast state, suggesting the overall rate environment is stronger than the company's conservative models assumed.

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