KENNETT SQUARE PA – Genesis Health Inc., which as Genesis Healthcare operates the Pennsburg Manor nursing facility at 530 Macoby St., Pennsburg, announced Wednesday (Nov. 8, 2017) it may be forced to consider filing for bankruptcy protection if it could not obtain relief from its creditors, Philly.com reported.
The company has been losing hundreds of millions of dollars due to overall fewer admissions, shorter patient stays, higher employee wages, and professional liability costs, according to a story by staff writer Harold Brubaker. Genesis, with headquarters in Kennett Square, is one of the nation’s largest nursing home operators.
It is not known how or when, if at all, financial problems in Genesis would affect the short-term rehabilitation and long-term care facility located in the borough.
“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,” Genesis said in its quarterly report to the federal Securities and Exchange Commission.
Health care reforms have either kept the elderly out of nursing homes, or reduced the time they spend in them, Brubaker wrote.
- Read Brubaker’s story, titled “Genesis Healthcare takes $532 million write-down, warns of possible bankruptcy” and published Nov. 8, here.
Photo from Genesis Health