PACS Group is one of the largest skilled nursing facility (SNF) operators in the U.S., operating 321 post-acute care facilities across 17 states and serving over 31,700 patients daily. PACS focuses on short-term transitional care — providing 24-hour inpatient skilled nursing services to patients recently discharged from hospitals who need clinical care before returning home, typically recovering from surgeries, strokes, joint replacements, or acute infections. PACS' core business model involves acquiring underperforming SNFs at distressed prices, then converting them from lower-acuity, Medicaid-heavy custodial care facilities into higher-acuity, short-term care facilities that predominantly serve Medicare and managed care patients. This conversion takes up to three years and involves investing in clinical staff, technology, equipment, and training. PACS uses a "locally led, centrally supported" operating model, where each facility is run by a local administrator while a corporate service entity handles back-office functions. Revenue is generated almost entirely from patient care services billed on a per-patient-day basis, with Medicare and Medicaid as the two largest payors. The key financial drivers are occupancy rate, skilled mix (the share of higher-reimbursing Medicare and managed care patients), and revenue per patient day. As facilities mature, occupancy and skilled mix improve, driving margin expansion. PACS classifies its portfolio into new, ramping, and mature cohorts, and the natural progression of facilities through these stages is a core organic growth engine. PACS also selectively acquires the real estate underlying its leased facilities to reduce rent expense over time.