Kennett Square’s nationwide skilled nursing provider hasn’t been making house calls very long, and it won’t be much longer either. Genesis HealthCare is selling off most of the home health and hospice operations it just acquired a year ago when it merged with Skilled Healthcare.
“Home health and hospice services are non-strategic businesses for Genesis to operate at this time, and we believe we can better allocate the capital by de-levering our balance sheet,” CEO George V. Hager, Jr. said in a Philadelphia Business Journal report by John George.
The Genesis units, which together produced $79 million in revenues for 2015, are located in California, Idaho, Montana and New Mexico, and are being sold for $84 million to Nashville-based hospice specialist Compassus. Additional Genesis hospice services in Arizona and Nevada will be closed.
The deal frees up funding for Genesis to focus on operating its predominantly skilled nursing, assisted living and senior living facilities, which number more than 500 across 34 states.