Genesis Healthcare Enters into Series of Agreements with New Generation Health, LLC
February 05, 2020 at 02:42 am IST
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Genesis HealthCare (Genesis or the Company) announced that it has entered into a series of agreements with New Generation Health, LLC. Genesis will transition operational responsibility for 19 facilities in the states of California, Washington and Nevada. Effective February 1, 2020, Genesis sold the real estate and operations of six skilled nursing facilities and transferred the leasehold rights to 13 skilled nursing, behavioral health and assisted living facilities, for a total of $79 million. Genesis will retain an indirect 50% interest in the facilities. Net transaction proceeds were used by Genesis to repay indebtedness and fund its indirect investment. Genesis is currently assessing whether it will continue to consolidate the financial statements of these facilities for financial reporting purposes. Concurrently, the facilities have entered, or will enter upon regulatory approval, into management services agreements with NewGen for the day-to-day operations of the facilities. Genesis will continue to provide administrative and back office services to the facilities pursuant to administrative support agreements, as well as therapy services pursuant to therapy services agreements.
Genesis Healthcare, Inc. is a holding company. The Company provides services to skilled nursing facilities and assisted/senior living communities. It also specializes in contract rehabilitation therapy, respiratory therapy, physician services, staffing services, and accountable care. It provides approximately 250 skilled nursing centers and senior living communities in 22 states nationwide. Its subsidiaries also supply rehabilitation therapy to approximately 1,400 locations in 43 states and the District of Columbia. It offers a range of services, which include rehabilitation therapy, memory support, long-term care, and assisted/senior living. Its rehabilitation therapy includes transitional care, short stay care, ventilator rehabilitation, dialysis, cardiac management, and pulmonary management. Its long-term care service provides 24-hour skilled nursing services for elderly residents and people with a chronic condition or a prolonged illness. It also offers hospice care services.