Latest news with #GenesisHealthcare
Daily Mail
11-07-2025
- Business
- Daily Mail
Nursing home chain with 175 facilities files for bankruptcy
A major nursing home chain with 175 senior living facilities across 17 states has filed for bankruptcy. The bankruptcy plunges a further 15,000 senior residents into the ongoing care crisis sweeping the United States. Genesis Healthcare said it was shelling out $8 million a month on personal-injury and wrongful death claims, a situation that became financially untenable. At its height in 2016 the company was operating more than 500 senior homes but found the scale to be unsustainable. However, even after selling off more than three fifths of their facilities, the company was tied into legacy liabilities including costly legal claims, legal filings submitted to the US Bankruptcy Court in Dallas reveal. The company has around 27,000 employees which it aims to keep in their positions as it enters bankruptcy. Genesis's creditors have committed $30 million to fund the bankruptcy proceedings and said residents will be able to stay in their homes and be cared for throughout. Private investment company ReGen Healthcare has made $100 million initial bid to purchase most of Genesis's assets out of bankruptcy, however the business is holding out for a bigger offer. Genesis teetered on the edge of bankruptcy during the pandemic but secured financing for ReGen. In return the investment entity put its own directors on the board, according to court papers. Genesis was founded in 1985 with nine nursing centers, a network that grew substantially over time with a focus on Medicare patients, the Journal reported. In 2024 the company's income came 61 percent from Medicaid, 17 percent Medicare, and 13 percent commercial insurance. There are almost 2,000 senior living facilities dotted across the country. At least 16 have filed for bankruptcy since the pandemic hit in March 2020, according to Wall Street Journal analysis. Those Chapter 11 filings wiped out $190 million worth of savings from 1,000 families, including 212 from the recently bankrupt Harborside on Long Island, New York. Harborside, a continuing-care retirement community in Port Washington filed for Chapter 11 bankruptcy in October last year. Its elderly residents each paid a substantial entrance fee - between $425,000 and $1.7 million depending on the package - as well as thousands of dollars in monthly fees. Entrance fees can be refunded to family members on a resident's death or returned to the retiree if they choose to leave the facility. However, when a facility such as Harborside enters bankruptcy the process ensures that secured creditors are paid before residents. This can mean that once debtors are paid the money due to families has been decimated. Arlene Kohen, an 89-year-old resident at Harborside paid the standard $945,000 entrance fee by selling her Great Neck home for $838,000, according to The Wall Street Journal . Following the bankruptcy her family now expects to receive less than a third of the $710,000 refund the facility promised her.
Daily Mail
11-07-2025
- Business
- Daily Mail
Nursing home chain with 175 facilities files for bankruptcy… as devastating senior care crisis hits new low
A major nursing home chain with 175 senior living facilities across 17 states has filed for bankruptcy. The bankruptcy plunges a further 15,000 senior residents into the ongoing care crisis sweeping the United States. Genesis Healthcare said it was shelling out $8 million a month on personal-injury and wrongful death claims, a situation that became financially untenable. At its height in 2016 the company was operating more than 500 senior homes but found the scale to be unsustainable. However, even after selling off more than three fifths of their facilities, the company was tied into legacy liabilities including costly legal claims, legal filings submitted to the US Bankruptcy Court in Dallas reveal. Genesis has debts of around $700 million which it owes to its main landlord, another real-estate entity that leases it facilities and private lender White Oak. 'We believe this financial reorganization is a necessary step for our organization to sustainably deliver on our mission of improving lives through delivery of high-quality healthcare and everyday compassion,' Lauren Murray, Genesis's chief operating officer, told the Wall Street Journal. The company has around 27,000 employees which it aims to keep in their positions as it enters bankruptcy. Genesis's creditors have committed $30 million to fund the bankruptcy proceedings and said residents will be able to stay in their homes and be cared for throughout. Private investment company ReGen Healthcare has made $100 million initial bid to purchase most of Genesis's assets out of bankruptcy, however the business is holding out for a bigger offer. Genesis teetered on the edge of bankruptcy during the pandemic but secured financing for ReGen. In return the investment entity put its own directors on the board, according to court papers. Genesis was founded in 1985 with nine nursing centers, a network that grew substantially over time with a focus on Medicare patients, the Journal reported. In 2024 the company's income came 61 percent from Medicaid, 17 percent Medicare, and 13 percent commercial insurance. There are almost 2,000 senior living facilities dotted across the country. At least 16 have filed for bankruptcy since the pandemic hit in March 2020, according to Wall Street Journal analysis. Residents organized a protest after the October bankruptcy, pleading with authorities to help them save their homes and life savings Those Chapter 11 filings wiped out $190 million worth of savings from 1,000 families, including 212 from the recently bankrupt Harborside on Long Island, New York. Harborside, a continuing-care retirement community in Port Washington filed for Chapter 11 bankruptcy in October last year. Its elderly residents each paid a substantial entrance fee - between $425,000 and $1.7 million depending on the package - as well as thousands of dollars in monthly fees. Entrance fees can be refunded to family members on a resident's death or returned to the retiree if they choose to leave the facility. However, when a facility such as Harborside enters bankruptcy the process ensures that secured creditors are paid before residents. This can mean that once debtors are paid the money due to families has been decimated. Arlene Kohen, an 89-year-old resident at Harborside paid the standard $945,000 entrance fee by selling her Great Neck home for $838,000, according to The Wall Street Journal. Following the bankruptcy her family now expects to receive less than a third of the $710,000 refund the facility promised her.
Bloomberg
10-07-2025
- Business
- Bloomberg
Bankrupt Genesis Healthcare Gets Bid to be Bought by ReGen
Genesis Healthcare Inc., one of the largest nursing home operators in the US, has filed bankruptcy and struck an initial deal to be acquired by affiliates of ReGen Healthcare LLC, according to court papers filed Thursday. ReGen is already an investor in Genesis and made its offer in the form of a stalking horse bid, meaning it will set the floor price to purchase Genesis during a potential Chapter 11 auction, the court papers show. The value of ReGen's bid couldn't immediately be learned.
Wall Street Journal
10-07-2025
- Business
- Wall Street Journal
Nursing Home Chain Genesis HealthCare Files For Bankruptcy
Genesis Healthcare, which operates approximately 175 nursing facilities throughout the U.S., filed for bankruptcy Thursday after struggling to overcome financial burdens including legal costs from personal-injury and wrongful-death claims. The company operated over 500 facilities at its peak in 2016, but began divesting hundreds of the facilities after finding it unprofitable to operate at that scale. However, the legacy liabilities from its peak footprint continued to hamper the company, according to papers filed in the U.S. Bankruptcy Court in Dallas.
Globe and Mail
10-07-2025
- Business
- Globe and Mail
LTC Operator Files for Bankruptcy
LTC Properties Inc. (NYSE: LTC) ('LTC' or the 'Company'), a real estate investment trust that primarily invests in seniors housing and health care properties, learned yesterday that Genesis Healthcare, Inc. ('Genesis') filed for Chapter 11 bankruptcy. Affiliates of Genesis lease six skilled nursing centers in New Mexico (five) and Alabama (one) with a total of 782 beds under a master lease with LTC. The master lease matures on April 30, 2026 and provides three 5-year renewal options. On June 3, 2025, LTC received Genesis' written notice of its exercise of a 5-year extension option, which would extend the term of the lease to April 30, 2031. Annualized revenue and annualized contractual cash revenue from Genesis were $8.4 million and $9.5 million, respectively, representing 4.5% and 5.1% of LTC's annualized revenue and annualized contractual cash revenue, respectively, as of March 31, 2025. Genesis has paid their contractual rent through July 2025. LTC holds $4.7 million of security from Genesis as required by the master lease in a letter of credit. About LTC Properties LTC is a real estate investment trust (REIT) focused on seniors housing and health care properties, investing through RIDEA, triple-net leases, joint ventures, and structured finance solutions. The Company's portfolio includes nearly 200 properties across approximately 25 states, operated by 25+ partners. Based on gross real estate investments, assets are evenly balanced between seniors housing and skilled nursing centers. Learn more at Forward Looking Statements This press release includes statements that are not purely historical and are 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the Company's expectations, beliefs, intentions or strategies regarding the future. All statements other than historical facts contained in this press release are forward looking statements. These forward-looking statements involve a number of risks and uncertainties. All forward looking statements included in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such forward looking statements. Although the Company's management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. The actual results achieved by the Company may differ materially from any forward‑looking statements due to the risks and uncertainties of such statements.
