COVID-19 Delivers Financial Blow To Nursing Homes
The biggest U.S. nursing-home company said low occupancy and expenses due to the pandemic led to a deepening loss in the quarter ending Sept. 30, and it is working on restructuring efforts after warning in August about its ability to continue as a going concern.
Genesis Healthcare Inc.’s quarterly results highlighted the continued financial pressure on nursing homes from Covid-19, which is showing signs of increasing again amid a national surge in cases. An August survey by the American Health Care Association, an industry group, found that 55% of nursing homes were operating at a loss, and 72% said they couldn’t sustain operations another year at the current pace. Some facilities have shut their doors in recent months.
Long-term-care facilities in the U.S. have been tied to more than 88,000 Covid-19 deaths since the start of the pandemic, according to a Wall Street Journal tally of recent state, local and federal data. Over time, long-term care deaths have tended to represent around 40% of all Covid-19 deaths.
Genesis saw its facilities in several states hit hard in the spring and early summer. The company said it hasn’t yet seen a major increase in infections with the latest national rise, but it is preparing for a possible next wave. Genesis leases, owns and manages 337 nursing homes around the country, including some that are joint ventures.