PACS Group’s core strategy emphasizes high-quality care, with 73.4% of its skilled-nursing portfolio rated four or five stars by CMS. Management states these elevated ratings make facilities more attractive to insurers, supporting stronger contract negotiations and driving margin expansion across the network.

The company plans to acquire approximately five underperforming facilities each quarter, targeting assets that can be turned around operationally. Alongside facility acquisitions, PACS evaluates real estate purchases to strengthen its balance sheet and capture long-term value.

While acquisitions remain the primary growth driver, PACS is open to de novo projects in underserved markets where returns are attractive. The company also positions itself to benefit from changes in value-based purchasing and early-stage pilots of the TEAM model that reward clinical quality and operational efficiency.