As COVID-19 took a deadly toll amongst people of Genesis Health care amenities, the fiscally troubled firm gave CEO George Hager Jr. a $5.2 million “retention payment.”
At the helm of the huge U.S. nursing house chain for the duration of athat has killed additional than 1,500 of its citizens and threatens to push it into bankruptcy, Hager obtained the reward in late October. He then resigned from the for-income organization, where by he had served as chief government for 17 many years, significantly less than a few months later, earlier this thirty day period.
Nursing residences account for a deaths, and outbreaks at Genesis facilities caught the consideration of lawmakers in excess of the summer time. “Far more than 1,500 People have died and a lot of a lot more have been infected at facilities owned by your enterprise, with at minimum 187 of your facilities reporting instances of the coronavirus,” associates of a Home panel searching into the impact of COVID wrote Hager in June.of the a lot more than 419,000 U.S. COVID-19
The toll at Genesis reportedly virtually doubled in the 2nd 50 % of 2020, with 14,352 confirmed cases among its people and 2,812 deaths as of December 20, according to the Washington Submit. An investigation of Medicare data by the information outlet observed virtually all of Genesis’ nursing homes jogging limited on personalized protective equipment up right until late November, immediately after the firm’s board experienced signed off on Hager’s reward.
Genesis did not answer to requests for remark from CBS MoneyWatch.
In a regulatory submitting in November, the business claimed its to start with report of a optimistic case of COVID-19 in 1 of its services occurred on March 16, 2020. Due to the fact then, 266 of its 360 nursing facilities and assisted living communities experienced claimed beneficial instances among patients and inhabitants, the submitting said. More than 70% of individuals scenarios occurred in five states — Connecticut, Maryland, Massachusetts, New Jersey and Pennsylvania — with those facilities symbolizing 45% of its beds. Genesis operates in 24 states.
Hager was also operating the Kennett Square, Pa.-based chain when it agreed in 2017 to spend the federal government approximately $54 million, partly for offering “grossly substandard nursing household treatment” at many amenities. Genesis denied the allegations, some of them involving events that occurred at nursing properties in advance of they’d been obtained by the organization.
In economic distress for many years, Genesis has cautioned its traders considering the fact that the summertime that the pandemic experienced worsened matters to the place wherever it may possibly have to file bankruptcy.
“The virus proceeds to have a sizeable adverse impression on the firm’s revenues and charges,” Hager mentioned in a November 9 earnings release in which the company described a net loss of $62.8 million for the third quarter of 2020. Govt stimulus in the third quarter fell nearly $60 million small of the company’s COVID-19 charges and shed profits, he stated.
“There is no problem Genesis will will need ongoing aid from the federal government and our capital associates to sustaining operations,” Hager advised an earnings simply call that day.
For the to start with nine months of very last yr, Genesis documented a reduction of $96 million, a period in which it was supplied $254 million in federal support similar to COVID-19, as effectively as commitments of $85 million from some of the states where it does organization.
With Hager continuing as a specialist, board chairman Robert Fish has taken over as Genesis CEO.