St. Joseph's Center evacuations and bankruptcy
On March 5, 2025, St. Joseph's Center, a medical nursing home complex located in Trumbull, Connecticut and owned and operated by Genesis Healthcare, experienced major water damage after officials found Legionella bacteria in the building. 187 occupants who were in the building at the time were evacuated and moved to other nursing homes across the state.[9][10]
On May 16, 2025, 107 occupants in the building were evacuated after management found fire safety issues described as "serious deficiencies that present conditions classified as Immediately Dangerous to Life and Health." This meant that the building was unsafe to be occupied until the issues were resolved.[11] On May 29, 2025, just short of two weeks after the previous incident, Genesis Healthcare announced that they would be permanently closing St. Joseph's Center once they get necessary approvals from the state. Genesis Healthcare officials noted that despite the building did receive necessary structural repairs to maintain safety to its remaining patients, they could not get waivers for additional repairs and structural improvements still lingering around the building.[12] However, CT Governor Ned Lamont claimed that what Genesis Healthcare had stated had "absolutely nothing to do" with the closure, instead blaming the company for submitting an improper closure request with the United States Department of Health and Human Services, asking Genesis Healthcare to resubmit another closure request. Trumbull First Selectman Vicki Tesoro announced that she would be working with Genesis Healthcare and the Roman Catholic Diocese of Bridgeport on possible future usage of the property.[13] The closure date was set for August 9, 2025, which will result in the layoff of 180 workers, including 70 nurses, plus the loss of 269 beds. Lamont additionally accused Genesis Healthcare of failing to maintain safety of its patients and employees after St. Joseph's Center had previously failed several safety inspections prior to the closure.[14]
On July 9, 2025, Genesis Healthcare and all of its affiliated subsidiaries filed for Chapter 11 bankruptcy protection in the United States District Court for the Northern District of Texas, listing assets and liabilities between $1 billion to $10 billion. The company has secured $30 million in debtor-in-possession financing from its lenders as part of the bankruptcy proceedings. [15] The company blamed its bankruptcy on being unable to pay for legal costs and rising wrongful-death lawsuits, as well as mass losses in revenue as a result from expanding too quickly, having over 500 properties by 2016.[16]
Prior to its July 9 bankruptcy filing, the company had warned of a potential bankruptcy twice, in 2017 and 2020. In November 2017, the company warned that it could be forced into Chapter 11 bankruptcy protection if it was unable to gain relief from its creditors, as it stated that it would most likely not be able to gain cash flow to continue maintaining its operations. The company's stock ended up falling to 87 cents per share after the announcement.[17] Then, on August 11, 2020, Genesis Healthcare once again warned that it could file for Chapter 11 bankruptcy as it faced "substantial doubt" that it would be able to properly continue its operations as a result from the effects of the COVID-19 pandemic, which ended up causing significant losses for the company throughout Q2 2020, and occupancy at its locations fell to 77%. The company claimed that while the Trump administration provided them resources throughout the pandemic, it ultimately was not enough for them to address necessary funding needed for those affected by the pandemic.[18] On March 3, 2021, Genesis Healthcare announced a voluntary restructuring of its operations and would be delisted from the New York Stock Exchange. During this restructuring plan, the company made efforts to eliminate $326 million of its debt, as well as improving financial metrics and eliminating the leases of 51 of its facilities, selling those leases to new operators.[19]
On July 10, 2025, ReGen Healthcare made a stalking horse bid to acquire all of Genesis Healthcare's assets for an undisclosed amount.[20]
