One of nation’s largest skilled nursing home chains files for bankruptcy

On Wednesday, Genesis HealthCare, Inc. announced that it was filing for Chapter 11 bankruptcy to “facilitate the Company’s restructuring efficiently and with minimal disruption to ongoing operations.”

While the company is based in Pennsylvania, the bankruptcy filing was in the Northern District of Texas Dallas Division. The company called this decision a “Strategic decision to restructure debt anchored in mission to provide high quality care [and] improve lives.”

The company lists assets and liabilities of $1 billion to $10 billion, including over $708 million in secured debt and over $1.5 billion in unsecured debt.

“We have much to be proud of for the tremendous progress we have made as an organization over the last several years as we have implemented a forward-looking, enterprise-wide shift from centralized to market-based operations,” David Harrington, Executive Chairman of the Genesis Healthcare, Inc., Board of Directors, said. “Our ongoing work has confirmed that, to maintain our momentum, we must address our legacy debt structure. The goal of this filing is to emerge a stronger, healthier company poised to exceed our goals for clinical and operational excellence.”

In a news release on the company’s website, it says that the filing includes provisions to ensure that all staff retain their positions, pay and benefits so patients and residents can continue to be served.

Subject to Court approval, the Company said it has secured a commitment of $30 million in debtor-in-possession financing from its existing secured lenders.

The Chapter 11 claim documents, acquired by News 19, list the creditors with unsecured claims. In total, there were 30 creditors, with the top creditor owing over $324 million.

“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 HealthCare Chief Operating Officer, said. “We assure all those who rely on us for care that we remain fully focused on and committed to providing the high-quality care you have come to expect, and we thank you for your continued confidence. This process is designed to ensure that we can continue to deliver on that commitment. We also are grateful for our talented staff and their dedication to excellence, which has positioned Genesis Healthcare for continued growth and a bright future.”

Genesis HealthCare has five locations in North Alabama:

• River City Center, Decatur
• Hilltop at Glenwood I and II, Florence
• Cypress Cove Center, Muscle Shoals
• Cottage of the Shoals, Tuscumbia
• Keller Landing, Tuscumbia

News 19 reached out to Genesis HealthCare to see how the bankruptcy filing would affect the North Alabama locations and we received the following statement from the company:

“We are notifying all appropriate regulators, officials, partners and individuals who will be affected by this filing – beginning with our team members, patients, residents and responsible parties – and will continue to do so as our efforts advance. Please continue to check www.genesishcc.com/announcement as well as the claims page linked in our press release for new information as it becomes available.

In the last several years, Genesis Healthcare has significantly strengthened our operational performance by investing in, designing and implementing a forward-looking, enterprise-wide shift from centralized to local market-based operations. Focusing resources and decision-making at the local market level has reduced administrative overhead and improved resident experience, staff recruitment and retention, quality, and financial operations.

It’s important to know that making a difference for everyone we serve remains at the center of our mission. There will be no expected impact to patient care as a result of this filing. Our daily operations remain unchanged, and our commitment to those we serve continues uninterrupted. Our filing includes provisions to ensure that staff will retain their positions, pay and benefits so patients and residents will continue to be served by the providers they trust. Vendor agreements will remain in place while the process moves forward.

This filing and proposed transaction are essential steps in definitively moving beyond our legacy debts, completing our transformative process and ensuring that we can deliver on our mission far into the future. The Genesis National Executive Team will lead us confidently and carefully through this process.”
Genesis HealthCare

This is a developing story. Stick with News 19 as we learn more.