PESP featured in Healthcare Dive on Genesis Healthcare bankruptcy

This week, Healthcare Dive covered the bankruptcy of Genesis Healthcare, one of the nation’s largest skilled nursing operators — and highlighted the Private Equity Stakeholder Project’s research and perspective on the case.

The article explains how Genesis’s financial collapse followed a familiar pattern: private equity-backed leveraged buyouts, a $2.4 billion sale-leaseback that stripped the company of real estate assets, and long-term rent obligations that drained resources needed for patient care. In July, Genesis filed for Chapter 11, weighed down by billions in debt.

PESP Senior Research Coordinator Michael Fenne told Healthcare Dive:

“Genesis Healthcare’s bankruptcy was a predictable result of a financial strategy that extracted value through debt and real estate transactions while leaving the company with fewer resources to sustain care. Unless these tactics are addressed directly, more nursing home operators may follow the same path and leave more patients, workers, and public programs to absorb the costs.”

PESP recently released a research update that takes a deeper look at the Genesis case. The report shows how Genesis’s bankruptcy is part of a broader trend: private equity-owned healthcare companies are dramatically overrepresented in large bankruptcies, putting patients and communities at risk.

📖Read our research on Genesis Healthcare here.
📰Read the Healthcare Dive story here.