The United States’ biggest nursing home owner, Welltower, announced it would ‘divorce’ from Genesis Healthcare in a move which will impact 51 Genesis properties.
Genesis HealthCare is the US’s largest provider of short-term post-acute, rehabilitation, skilled nursing and long-term care services.
Welltower, a real estate investment trust with 1,687 facilities in the US, will terminate $800 million in leases to complete the split while also looking for regional operators who might take over management.
Genesis Healthcare run 325 facilities across the US and was given access to a level of financing other smaller companies weren’t as a result of the partnership.
Welltower told Forbes the move was an attempt to ‘de-risk’ its portfolio.
Welltower is considered a large player in the aged care sector with market capitalization of nearly $36 billion in 2020 alone.
Genesis will now undergo major restructuring as Congress prepares to pass a pandemic relief bill to increase Federal support for home care but not for nursing homes.