Latest news with #GenesisHealthcare
Wall Street Journal
5 days ago
- Business
- Wall Street Journal
Genesis Creditors Accuse Nursing Home Owner of ‘Rinse and Repeat' Bankruptcies
Personal-injury claimants alleged that bankrupt nursing home chain Genesis Healthcare is trying to cleanse itself of tort liabilities in chapter 11 before its private-equity investor who controls Genesis buys the company's assets back on the cheap. In recent court filings, lawyers for tort claimants alleged that healthcare and real-estate investor Joel Landau who controls Genesis and other company insiders are attempting to use a $30 million proposed loan to control the chapter 11 process and buy its 175 skilled nursing facilities out of bankruptcy free and clear of past liabilities.
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.
