Genesis Healthcare Files Chapter 11

Well, that didn't take long. Genesis Healthcare, one of the nation's largest nursing home operators with 200+ facilities, just filed Chapter 11. Remember when they "narrowly avoided bankruptcy" back in 2021? Turns out they just delayed the inevitable.

The plot twist: ReGen Healthcare, the same group that threw them a lifeline in 2021, is now positioning to buy them in bankruptcy court. Nothing says "we believe in your turnaround story" like letting you go bankrupt and then picking up the pieces at a discount. Genesis went from 500+ facilities to 200, shed all the junk, improved operations, and still couldn't make it work.

What's the story here anyway? They could not figure out how to find operators with deep experience in the states they were struggling in and partner or hire to shore up facilities losing money? Is there something inherent to the nursing home industry that seems to make scale a big problem?

Meanwhile, someone should ask Joel Landau how he feels about this. Say what you want about Joel's approach, but the guy gave like 30 frum guys their first facilities and got them started in the business. Genesis may have been the single biggest incubator for chevra getting into the SNF industry. Many successful operators reading this probably got their start with a Genesis facility that Joel helped them acquire back in the day.

Elliot Shwab - a lot of people owe you a big one :)

The Irony: While Genesis couldn't figure out how to make money with 500 facilities, a bunch of the guys who learned the business there or who got their first home or 2 from genesis or who had 5 homes but received the opportunity to double or more than double in size. Sometimes the best thing a failing company can do is train the next generation before it collapses. But of course to call this a failure is a bit rich. I'm sure a smart Jew like Joel made money a thousand different ways through Genesis. Still no one likes having to declare bankruptcy.