Without relief from creditors, Kennett Square-based Genesis Health – one of the largest nursing home operators in the country – may have to file for bankruptcy protection, writes Harold Brubaker for the Philadelphia Inquirer.
“As currently structured, it is unlikely that the company will be able to generate sufficient cash flow to cover required financial obligations, including its rent obligations, its debt-service obligations, and other obligations due to third parties,” the company said in its quarterly report to the Securities and Exchange Commission.
According to the Inquirer, Genesis blamed “the persistent pressure of healthcare reforms enacted in recent years.”
“The negative impact of continued reductions in skilled patient admissions, shortening lengths of stay, escalating wage inflation and professional liability losses, combined with the increased cost of capital through escalating lease payments accelerated in the third quarter of 2017,” Genesis said.
Click here to read more about Genesis HealthCare in the Philadelphia Inquirer.