This report does not constitute a rating action. This is supported by strong bookings through the third-quarter and continued investment in additional software solutions for skilled nursing facility (SNF) customers. PCC?s value proposition and dominant market share in providing a cloud-based electronic health record (EHR) platform to SNF customers has proven resilient amid financial and regulatory headwinds facing SNFs. We believe customers consider its EHR software platform a critical tool for data management and regulatory compliance and that customer satisfaction and material switching costs contribute to low levels of attrition. That said, we believe PCC?s pricing power could weaken if SNF financial conditions deteriorate further and that the company?s revenues from health systems are more susceptible to competition given a
