Due to COVID-19-related losses exceeding federal aid by $60 million, Kennett Square-based Genesis HealthCare has begun talks with its financial backers on several possible restructuring options, writes Alex Spanko for Skilled Nursing News.

“We have initiated discussions with select capital partners to analyze a number of restructuring alternatives,” Genesis CEO George Hager said during the company’s third-quarter earnings call. “We will continue to work diligently to protect our patients, residents, and staff; improve the operating performance of the business; and pursue opportunities to improve the financial position of the company.”

These options could include changes to the leases and debts held by the company, new joint-venture arrangements, and potentially capitalizing on ancillary business lines.

“It’s hard to give you a percentage or a status of where any of those conversations are,” said Hager.

In the third quarter of 2020, the nation’s largest nursing home operator recorded a net loss of $62.8 million, compared to net income of $46.1 million for the same period last year. The company did receive $64 million in federal and state COVID-19 relief in the three-month period; however, expenses and lost revenue were nearly double that at $124 million.

Read more about Genesis HealthCare from Skilled Nursing News here.

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