/

|

A $6.7B Utah-based operator of skilled nursing facilities has seen its turnaround strategy for struggling facilities described as “systematically scamming” taxpayer-funded healthcare programs in a short report by Hindenburg Research.

Since going public in April, PACS Group had seen its stock rise 104%, but its price tumbled 28% Monday after Hindenburg’s report was published, Bloomberg reported. The stock dropped from $30.80 per share at the close of trading Monday to $29.35 at 10:50 a.m. Eastern Standard Time on Tuesday before climbing back to $30.85 per share just before noon.

PACS manages nearly 300 nursing facilities in 16 states and serves more than 27,000 patients per day, according to a recent filing. The Hindenburg report accuses PACS of using a pandemic-era waiver to “inappropriately” access skilled care Medicare benefits for thousands of its facilities’ patients.