The operations of 19 Genesis Healthcare facilities will be transferred to healthcare consulting firm New Generation Health in a series of deals worth close to $80 million. 

Details of the deals were announced Tuesday and involve 19 skilled nursing, behavioral health and assisted living facilities located in California, Washington and Nevada. 

Genesis sold the real estate and operations of six SNFs and transferred the leasehold rights of 13 other facilities to NewGen for a total of $79 million. The agreements were effective Feb. 1.  

George Hager Jr.
George Hager Jr.

“Our relationship with NewGen creates a West Coast senior care provider with the flexibility of an independent, local or regional operator, but with the backing of a robust national platform,” Genesis CEO George V. Hager Jr. said in a statement. 

“This transaction enables Genesis to leverage NewGen’s commitment of capital as well as its extensive experience and intimate knowledge of the west coast skilled nursing market, allowing for increased operational focus on our core strategic markets where we have functional and geographic density,” he added. 

Genesis will retain an indirect 50% interest in the facilities, and net transaction proceeds are being used to repay indebtedness and fund its indirect investment. 

The facilities have entered into — or are planning to upon regulatory approval — management services agreements with NewGen for the day-to-day operations, according to the company. The provider is also working to assess whether it will continue to consolidate the facilities’ financial statements for reporting purposes. 

“Genesis will continue to provide administrative and back office services to the facilities pursuant to administrative support agreements, as well as therapy services pursuant to therapy services agreements,” the company stated.