GENESIS HEALTHCARE REPORTS SECOND QUARTER 2020 RESULTS; Company Provides COVID-19 Update8/10/2020
KENNETT SQUARE, PA – Genesis Healthcare, Inc. (Genesis, or the Company) (NYSE:GEN), one of the largest post-acute care providers in the United States, today announced operating results for the second quarter ended June 30, 2020 and provided an update regarding the impact of the 2019 novel coronavirus (COVID-19) pandemic on its business.
“As the effects of COVID-19 persist in the United States, the Company’s primary focus continues to be on the health and safety of its patients, residents, employees and their respective families,” stated George V. Hager, Jr., Chief Executive Officer of Genesis. “I am extremely grateful for the heroism, resolve and sacrifice of our frontline caregivers and workers fighting the pandemic, along with our dedicated regional and corporate staff who are supporting their efforts on the ground. I am also very proud of the leadership role Genesis is playing in the fight against COVID-19 in partnership with the Administration, public health officials at the federal, state and local levels, and our peers and partners in the industry, as well as the academic community.”
“The virus is having a significant adverse impact on the Company’s revenues and expenses, particularly given the Company’s concentration in hard-hit Mid-Atlantic and Northeastern states. Before considering funds recognized under the CARES Act and various state Medicaid programs, we estimate the impact of incremental expenses and lost revenue caused by COVID-19 in the second quarter of 2020 was approximately $213 million. While we are grateful for federal and state financial support received and committed to date, the persistence of COVID-19 outbreaks across the country, the slow pace of top line recovery in our portfolio and the elevation of operating expenses caused by COVID-19 highlight the Company’s reliance on and need for additional government sponsored financial support which is essential to meeting our responsibilities to patients, residents and caregivers. We will continue to work closely with industry advocates, elected officials and the Administration to articulate thoughtfully the resource needs of our Company and the industry in the fight against COVID-19.”
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