Genesis Adding 38 Nursing Homes in Largest Expansion Since ‘Market Model’ Launch

Genesis Healthcare Inc. will add 34 nursing homes in Pennsylvania to the 15 the company currently operates in the state, in addition to taking over management of four in Colorado.

“This transition marks the largest expansion of services provided by Genesis and its affiliates since the organization underwent a transformation into a market model approach in the delivery of patient care,” Genesis COO Melissa Powell said in a statement emailed to Skilled Nursing News.

After a turbulent period marked by divestments, at the end of 2021, the company had 250 facilities in 14 skilled nursing markets across 22 states, far from the more than 400 facilities it had operated as recently as 2018.

In 2021, the company announced a three-part strategic restructuring plan as a “path to recovery,” which included steps to reduce its debt by $256 million and an agreement with ReGen Healthcare LLC for a capital infusion of $50 million.

Genesis voluntarily delisted from the New York Stock Exchange and also sold 51 skilled nursing, assisted living and senior living facilities in nine states to new operators in exchange for $86 million, which was used to repay a portion of its debt obligations to real estate investment trust Welltower (NYSE: WELL), along with $170 million in debt reduction from Welltower.

Genesis shifted toward a market-focused model as part of its ongoing restructuring efforts, which will be “designed to build out a vertically integrated community-based health care system in every market, supported by centralized resources,” according to the company.

In June 2022, Powell spoke with Skilled Nursing News about the company’s restructuring. Powell said that although there is much work to be done, Genesis has seen improvements in retention and is focusing on fostering leadership roles in every Genesis facility.

“We talk now about buildings first, the building needs to run the care. They need to be supported by a national structure or market structure,” Powell told SNN. “We kind of took down those barriers of almost like how do we support the building, not do it for the building … and that’s the perfect mix.”

This approach will be extended to the facilities now coming under Genesis management.

“The National Services Team of Genesis looks forward to supporting and empowering facility leaders as they continue to focus on meeting the needs of local communities and achieving the best possible outcomes for patients and residents,” Powell said in her emailed statement. “We already have a strong market presence in Pennsylvania and Colorado, and we are confident that these facilities will strengthen the services these markets provide.”

The latest Genesis deal brings the organization back into a deeper relationship with Welltower, which had bought most of Genesis’ real estate for $2.4 billion in 2011.The communities Genesis is adding to its portfolio were formerly operated by ProMedica and are part of a recently formed JV between Integra Health and Welltower. Following the partnership, ProMedica had agreed to surrender its 15% interest in the 147-property portfolio, which Integra is now subleasing to 15 regional operators.