Owner of nursing facilities in Uniontown, South Fayette files for bankruptcy
Brad Hundt/Observer-Reporter
Genesis HealthCare Inc., the onetime nursing home giant that owns facilities in Uniontown and South Fayette Township, has filed for Chapter 11 bankruptcy.
Based in Kennett Square, the company filed for bankruptcy Thursday in the U.S. Bankruptcy Court for the Northern District of Texas. Genesis operates 175 skilled nursing facilities in 18 states. Of those 175 facilities, 42 are in Pennsylvania, including the Bridgeville Rehabilitation and Care Center in South Fayette Township and the Laurel Ridge Center in Uniontown.
Lauren Murray, the CEO of Genesis HealthCare, told Philadelphia NPR outlet WHYY that she did not believe the bankruptcy filing would affect “resident care or staffing.” Murray said in a news release that the bankruptcy filing is “a necessary step for our organization to substantially deliver on our mission of improving lives through the delivery of high-quality health care and everyday compassion.”
By filing for Chapter 11 bankruptcy, Genesis HealthCare will be able to restructure its debt and continue to operate. According to the bankruptcy filing, it is shouldering more than $700 million in secured debt, which is backed by collateral, and $800 million in unsecured debt, which is not. Among the entities that Genesis HealthCare reportedly owes money is the Commonwealth of Pennsylvania – it is $58 million in arrears to the state for nursing facility assessment fees.
Genesis says it has secured $30 million in financing that will allow it to continue operating.
Ten years ago, Genesis was a giant in the nursing home field, operating about 500 skilled nursing centers across the country. However, like other health care companies, it has experienced considerable turbulence in recent years as a result of regulatory changes, legal liabilities, the COVID-19 pandemic and Medicaid reimbursements that have not fully covered their costs.
David Harrington, executive chairman of the Genesis HealthCare board of directors, said in a news release that the bankruptcy filing was necessary “to maintain our momentum” and that the company “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.”