KENNETT SQUARE, PA — Genesis HealthCare, Inc. announced it has initiated a financial restructuring plan through a voluntary Chapter 11 filing, a move aimed at stabilizing the organization’s financial foundation and securing its long-term mission of delivering high-quality healthcare.
The filing, submitted to the U.S. Bankruptcy Court for the Northern District of Texas Dallas Division, is designed to allow Genesis to continue daily operations without disruption while addressing significant legacy liabilities tied to previously divested operations.
“We have much to be proud of for the tremendous progress we have made as an organization over the last several years as we have implemented a forward-looking, enterprise-wide shift from centralized to market-based operations,” said David Harrington, Executive Chairman of Genesis HealthCare’s Board of Directors. “Our ongoing work has confirmed that, to maintain our momentum, we must address our legacy debt structure. The goal of this filing is to emerge a stronger, healthier company poised to exceed our goals for clinical and operational excellence.”
Genesis has secured a $30 million debtor-in-possession (DIP) financing commitment from its existing secured lenders, subject to court approval. Combined with existing cash reserves and operating cash flow, this funding will help ensure that all obligations are met throughout the reorganization process.
Under the restructuring plan, employees will maintain their positions, pay, and benefits, ensuring continuity of care for patients and residents. Vendor agreements are also expected to remain intact, minimizing potential operational disruptions.
Lauren Murray, Chief Operating Officer at Genesis HealthCare, emphasized the importance of the filing to the organization’s mission. “We believe this financial reorganization is a necessary step for our organization to sustainably deliver on our mission of improving lives through delivery of high-quality healthcare and everyday compassion,” she said. “We assure all those who rely on us for care that we remain fully focused on and committed to providing the high-quality care you have come to expect.”
Genesis’ leadership expressed gratitude to its staff for their ongoing dedication, noting that their commitment has positioned the company for future growth and operational success even amid financial restructuring.
With this move, Genesis aims to build on its shift toward a market-based operating model while preserving the stability and quality of care that patients, families, and communities have long trusted.
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