The Senior Care Policy Briefing covers important long-term care issues by highlighting policy updates, news reports, and academic research.

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October 5, 2026.

THE PACS NURSING HOME CHAIN: IS CARE KEEPING PACE WITH PROFITS?

  • Nursing home giant PACS Group is accelerating its expansion. The company recently agreed to acquire operations at 32 Florida nursing homes with 4,049 beds, on the heels of its acquisition of 34 Eduro facilities with 3,633 beds across six states. Skilled Nursing News reports that PACS now oversees 358 facilities, and executives expect a rapid pace of continued growth.
  • PACS’s expansion follows another period of strong financial performance. The company reported $1.43 billion in Q2 revenue, up 9.1% from the prior year, and raised its 2026 financial outlook. PACS also invested nearly $191 million in owned real estate during the first half of 2026, while executives described a strong and increasingly diverse acquisition pipeline.
    • PACS’s financial performance and acquisition activity is yet another indication that, despite decades-long claims of “razor-thin profits,” the nursing home industry is highly profitable.

WHAT DO THE DATA SHOW?

  • LTCCC’s latest analysis of federal data raises concerns about whether staffing is keeping pace with PACS’s growth. Among 274 PACS nursing homes identified in the data, the chain has below average federal ratings for staffing and health inspections and above average ratings for “quality measures” (which are largely self-reported and unaudited for accuracy). Only three PACS facilities have five-star staffing, while 44 have one-star staffing.
    • PACS facilities with available data provide an average of 0.53 RN hours per resident day – 52% below the 1.09 hours expected based on resident needs. Total nurse staffing averages 3.91 hours per resident day, about 24% below expected.
    • Federal data also identify two PACS-affiliated nursing homes as Special Focus Facilities and another 10 as SFF candidates, designations associated with facilities that have histories of serious quality problems.
    • LTCCC perspective: As PACS continues its rapid expansion in numerous states, these data provide important tools for state officials to assess whether corporate growth is translating into sufficient staffing, safe resident care, and the appropriate use of taxpayer funds.