“The severity of the pandemic dramatically impacted patient admissions, revenues and costs, compounding the pressures of our long-term, lease-related debt obligations,” said Genesis chief executive Robert Fish, who replaced longtime leader George Hager as CEO in January.Īdvocates for the elderly and unions that represent nursing home workers have decried the impact of private equity ownership on the nursing-home sector. The move also marks a significant turn in the history of Genesis, which was founded in 1985, and has cycled through public and private ownership over the last 20 years, each stage piling on debt.
The investment by ReGen is needed to ensure that Genesis doesn’t run out of cash for its day-to-day operations. If both deals are completed, ReGen would control 43% of Genesis’s shares. ReGen Healthcare LLC, a new private-equity-backed firm, has agreed to invest $50 million in Genesis, with the possibility of investing $25 million more by April 15. Genesis Healthcare Inc., a major national nursing home operator that has long struggled financially, announced Wednesday that it will delist its shares from the New York Stock Exchange and receive an investment that could give a New York private-equity firm control of the Kennett Square company.