Genesis On The Hunt Again For A New CEO After Wilson Announces Exit

October 25, 2021, Alex Zorn, Skilled Nursing News - Genesis HealthCare Inc. is yet again on the hunt for a new leader less than eight months after current CEO Harry Wilson was named to head the organization as the post-acute care company continues its restructure during the COVID-19 pandemic.

Wilson and his consulting firm, the MAEVA Group, were brought on in March to develop and execute a “turnaround plan” for Genesis.  Wilson and the firm will “complete their engagement” by Nov. 15, according to a press release.  The company’s board of directors will search for a new CEO.

“Genesis has already made significant progress in a very short period of time and the company’s financial situation has improved,” Genesis Board Chairman David Harrington said in a press release.  “With my support, our seasoned senior leadership team will continue to execute on the restructuring plan with the same level of focus and commitment while the Company searches for a new CEO.” 

Wilson was the company’s third CEO of 2021 after replacing Robert Fish in March, who held the role for less than three months after starting in January.

At the time of his hire, Wilson was described as a “turnaround specialist” with a track record of restructurings.

Genesis has faced a difficult few years and reportedly saw $67 million in lost revenue associated with COVID-19 during the second quarter of 2020 and $74 million for the first six months of 2020.  The company’s occupancy dropped from 88.2% from the first quarter to 77% in the second and went down to 74.8% by July. 

The company delisted from the New York Stock Exchange, formerly Genesis Healthcare (NYSE: GEN), and has seen its skilled nursing portfolio shrink in recent years.

In March — Genesis — announced a three-part strategic restructuring plan as it “charts a path to recovery,” which included steps to reduce its debt by $256 million and an immediate $50 million capital investment.  The company sold 51 skilled nursing, assisted living and senior living facilities in nine states to new operators in exchange for $86 million that was used to repay a portion of its debt obligations to Welltower, along with $170 million in debt reduction from Welltower.

Genesis also entered into an agreement with ReGen Healthcare, LLC for a capital infusion of $50 million, adding Harrington to its board as part of the deal.