Is Genesis Healthcare Going Out of Business? Even as the company was struggling among the damage of COVID-19 circumstances, a top US congressman increased her vehement attacks on embattled Genesis HealthCare’s award of a large bonus to a diffident long-time CEO.
All allegations of misconduct have been heatedly refuted by Genesis leadership.
Senator Elizabeth Warren stated plans to initiate an investigation into for-profit nursing homes in general. Including those owned by private equity groups, in addition to the attacks on Genesis.
“Seniors shouldn’t be kept in inferior institutions operated by greedy CEOs and vulture firms in order to make a quick buck the next time there’s a pandemic,” she said. “Congress must act now, before another catastrophe occurs.”
Is Genesis Healthcare Going Out of Business? According to the major post-acute care operator, a $5.2 million retention motivation granted to former Genesis HealthCare CEO George Hager months before he retired was not funded with government coronavirus relief monies.
While Genesis got $417 million in state and federal funds and $248 million in loans or advances. It also incurred more than $460 million in COVID-related expenses and lost revenue, according to its statement.
As a condition of receiving government relief funds, the company must utilize the cash to pay for expenses and the impact of lost revenue due to the epidemic, and it will be subject to a “mandatory, independent audit of such expenses and lost revenue,” according to the corporation.
“To be clear, executive payment is not a COVID-19-related item under the statute, and Genesis will not include any executive compensation in expenses allocated under the CARES Act allocation and accounting procedure”, the company noted.
“To summarize, while Genesis was affected hard by the pandemic, with heartbreaking losses, the firm is proud of the brave efforts of its personnel and the massive efforts made. At considerable expense, to keep residents and employees safe”. “The claim that the company used CARES Act funds to pay executive bonuses. Which it did not, is deeply unfair, as is the claim that its efforts to retain personnel, as it faced unprecedented public health and financial circumstances, somehow compromised its commitment to patient safety”, the company argued.
Genesis HealthCare Information
Is Genesis Healthcare Going Out of Business? Genesis HealthCare is a holding business with companies that provide services to over 325 skilled nursing homes and assisted/senior living communities in 24 states around the country. Around 1,100 healthcare practitioners in 44 states, the District of Columbia, and China receive rehabilitation therapy from Genesis subsidiaries. Genesis Healthcare, Inc. and its wholly-owned subsidiaries are referred to as “Genesis,” “the Company,” “we,” “us,” and “our” in this release. Visit www.themacforums.com for more information.
Investor Relations, 610-925-2000, Genesis HealthCare
Statements that are made in the future, several proclamations in this release are “forward-looking statements” under federal securities laws, including the Private Securities Litigation Reform Act of 1995. These assertions can be illustrious by the fact that they are not strictly based on historical or present facts. They include terms like “may,” “will,” “project,” “might,” “expect,” “believe,” “anticipate,” “could,” “would,” “estimate,” “continue,” “pursue,” “plans,” or “prospect,” as well as negative or equivalent terminology.
All statements in this release that are not historical facts should be regarded as forward-looking statements, including statements about;
- Our ability to delist the Class a Shares from the NYSE
- Our ability to deregister the Class a Shares and suspend reporting obligations under the Exchange Act
- Estimates regarding the timing of the delisting and deregistration of Class a Shares
- Statements about the Second Closing, which may or may not occur
Investors should be aware that forward-looking statements do not guarantee future performance or results and are subject to risks and uncertainties that are difficult to expect or quantify. As a result, Genesis’ actual performance may differ materially from that expressed or implied by such forward-looking statements.
Is Genesis Healthcare Going Out of Business? Investors and readers are cautioned not to place undue reliance on these forward-looking statements, which are based on the Company’s expectations as of the date of this release and speak only as of the date of this release, and are advised to consider the factors listed under the headings.
“Forward-Looking Statements” and “Risk Factors” in the Company’s filings with the SEC, including the Annual Report on Form 10-K for the year ended December 31, 2019, and are advised to consider the annually report. Except as required by law, Genesis disclaims any duty to update its forward-looking statements or any of the information contained in this release.