Medicaid billing waiver abuse
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Pacs Group CFO resigns amid allegations of improper conduct
Yahoo Finance· 2025-09-10 11:54
Group 1 - Pacs Group operates over 300 skilled nursing facilities across 17 states and has uncovered improper conduct by CFO Derick Apt during an investigation into its billing practices [3][7] - The company has faced scrutiny for failing to file financial results on time, with accusations of fraudulent activity from activist investor groups [4][5] - Following Apt's resignation, the company's stock price dropped nearly 30%, indicating investor concern over the executive shakeup and ongoing financial issues [6] Group 2 - The New York Stock Exchange threatened to delist Pacs Group after it failed to report third- and fourth-quarter earnings for 2024, giving the company until November 19 to rectify the situation [5][7] - Pacs Group audited its finances after a report from Hindenburg Research accused it of misusing a COVID-19 era Medicaid billing waiver, leading to a $4 million overstatement in revenue [5][6] - Mark Hancock has been appointed as interim CFO following Apt's departure, marking another significant leadership change within the company [4][7]