Earlier this week, Sun Healthcare Group, Inc., a publicly held company operating in 23 states, agreed to a deal with privately held Genesis HealthCare Corp., based in Kennett Square, Pa., and with properties in 13 states. Lowered reimbursements and the uncertain future of the healthcare industry led to this agreement.
In a Reuters article, analyst Arthur Henderson said about Sun Healthcare, “I think it will make them a better company just being private with Genesis than they would be as a public company and struggling quarter to quarter.”
Genesis is one of the largest skilled nursing and rehabilitation providers in the United States with more than 200 centers and assisted living residences. Offering similar services, Sun Healthcare will add its 21,444 licensed bed under the Genesis umbrella. The company is expected to generate $4 billion that would help the company ride out changes in healthcare policy.
Commenting on the sale, Genesis CEO George V. Hager Jr. said in a statement, “Strategically, we will be able to improve economies of scale while enhancing our footprint and breadth of services.”