Genesis Healthcare Pulls the Plug on Raton Nursing and Rehab

Genesis Healthcare, owner of Raton Skilled Nursing and Rehabilitation, announced that the facility will close it's doors within the next few months, according to a press release from Lori Mayer, Media Relations with Genesis Healthcare,
"We have made the difficult business decision to voluntarily close Raton Skilled Nursing and Rehabilitation Center."
RSN&R has filed notice letters with the NM State Dept. of Health and other governmental entities regarding their intent to close the facility. According to Mayer, they have experienced significant census issues and other business challenges.  In addition, RSN&R "requires substantial renovations and structural improvements to keep up with the safety requirements and standards that our patients and families expect. As a result of these factors, we have made the difficult decision to close the Center."

RSN&R is working with the New Mexico Department of Health to execute a Closure Plan to safely transfer residents to other centers that can meet their needs.  The Center will be fully operational until each resident is safely transferred, and Mayer said that process would be approximately two months.  

The current census is approximately 35 residents at RSN&R, and it employs approximately 46 full-time, part-time and per diem employees.

Genesis HealthCare announced June 5, 2019 that it was officially taking over operation of Raton Nursing and Rehabilitation Center, a skilled nursing center located at 1660 Hospital Drive, Raton, NM 87740.  
 
In financial distress for years, Genesis has cautioned its investors since the summer that the pandemic had worsened matters to the point where it might have to file bankruptcy. 

"The virus continues to have a significant adverse impact on the company's revenues and expenses," said former CEO George Hager, Jr. in a November 9 earnings release in which the company reported a net loss of $62.8 million for the third quarter of 2020. Government stimulus in the third quarter fell almost $60 million short of the company's COVID-19 costs and lost revenue, he said.

"There is no question Genesis will need ongoing support from the federal government and our capital partners to sustaining operations," Hager told an earnings call that day. 

For the first nine months of last year, Genesis reported a loss of $96 million, a period in which it was given $254 million in federal aid related to COVID-19, as well as commitments of $85 million from some of the states where it does business. 

With Hager continuing as a consultant, board chairman Robert Fish has taken over as Genesis CEO. 

Genesis Healthcare, Inc. is a holding company headquartered in Kennett Square, PA with subsidiaries that, on a combined basis, comprise one of the nation's largest post-acute care providers with nearly 400 skilled nursing centers and senior living communities in 26 states nationwide. Genesis subsidiaries also supply rehabilitation therapy to approximately 1,200 locations in 46 states and the District of Columbia. Genesis and its subsidiaries employ approximately 70,000 people.