Local Operator Genesis Healthcare in ‘Turnaround’
KENNETT SQUARE PA – Genesis Healthcare, the skilled nursing and assisted living provider for seniors that operates facilities in Sanatoga (at top), Phoenixville, and Pennsburg, has hired a new chief executive officer who also is a corporate turnaround specialist to help it emerge from coronavirus-related financial struggles, the Philadelphia Business Journal reported.
Harry Wilson, who in 2011 founded a firm focused on helping to transform and better position companies for long-term success, became the company’s leader Tuesday (March 23, 2021), according to a Journal story by reporter John George. Earlier, Wilson also was a hedge fund manager, and helped in restructuring General Motors on behalf of the US Treasury.
The company said Wilson’s immediate task would be to develop and execute “a turnaround plan for the company, while building a foundation for future innovation and growth.” The plan in part includes a $50 million debt financing agreement, and terminating leases that cover 51 long-term care facilities. It was not immediately known how those moves might affect local operations.
The pandemic reportedly reduced patient admissions and revenues while increasing costs. Genesis posted a net loss of nearly $59 million in 2020, after recording a profit of $14.6 million the previous year.
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