Kennett Square’s Genesis Healthcare will operate 34 additional nursing homes in Pennsylvania, writes Harold Brubaker for The Philadelphia Inquirer.  

The company has shrunk significantly in recent years as it struggled to keep up with rent but is now making a comeback. 

Nursing home landlord Welltower wanted to change the operators of 147 nursing homes. The properties that the healthcare company will take on were previously operated by the nonprofit healthcare system ProMedica.  

Genesis Healthcare already operates 15 nursing homes in Pennsylvania, ten in New Jersey and will take on four in Colorado. Welltower believes that replacing ProMedica as an operator has yielded a higher success rate for the facilities.

Many real estate investment firms have been shifting away from nursing homes due to the COVID-19 pandemic. Genesis is a for-profit company that sold most of its real estate to Welltower in 2011. It was founded in 1985 and declared bankruptcy in 2000.  

It pivoted to short-term rehabilitation in 2012 through its Powerback initiative. Three other ProMedica operated facilities are going to New Jersey’s Tryko Partners.  

Read more about the company’s stake in Pennsylvania facilities in The Philadelphia Inquirer.