Dive Brief:

A new report from the Private Equity Stakeholder Project alleges skilled nursing facility operator Genesis Healthcare’s bankruptcy filing last month can be traced to financial mismanagement at the hands of its private equity owners.

Formation Capital, which acquired Genesis nearly two decades ago utilized leveraged buyouts, sale-leaseback transactions and layered debt to extract value from the operator, while Genesis struggled to stay viable, according to the report.

Genesis’ bankruptcy isn’t an isolated event, the report argues. Private equity-backed firms were involved in more than half of large healthcare bankruptcies last year , according to the watchdog group.

Dive Insight:

Genesis, which once operated 175 skilled nursing facilities across 18 states, filed for Ch

See Full Page