Kennett Square’s Genesis HealthCare plans to sell 10 more of its assets that are either underperforming or in non-strategic markets by early next year, writes John George for the Philadelphia Business Journal.
The company did not specify which facilities would be affected.
“We continued to execute on our plan to divest non-strategic assets,” said George V. Hager Jr., Genesis CEO. This “will allow for increased focus on markets where we have geographic density.”
The company has already sold 18 facilities with combined annual revenue of $110 million in Kansas, Missouri, Nebraska, and Iowa for $80.2 million. The company has also sold two leased facilities. All funds from the sales will be used to pay down debt.
At the beginning of 2017, Genesis operated 499 skilled nursing and assisted or senior living facilities nationwide. In the second quarter, they generated revenue of $1.34 billion, down from $1.44 billion in the same period of last year, and created a loss of $65.2 million for the period. This was a significant increase from the $23 million loss reported for the same period last year.