Nursing Home Chain Genesis HealthCare Files for Bankruptcy Amid Lawsuits
UPDATE: In a shocking turn of events, Genesis HealthCare, once the nation’s largest nursing home chain, has filed for bankruptcy, raising urgent concerns about its ability to address nearly $259 million in liabilities linked to severe resident injuries and deaths. This move comes after a series of disturbing allegations regarding negligence, including cases of elder abuse and delayed medical care, that have left families devastated.
Nancy Hunt, who tragically died after suffering from a gangrenous foot, is among the many victims whose families are now grappling with the fallout. Hunt’s son has been fighting for justice, having reached a $3.5 million settlement with Genesis in August 2024, which remains unpaid. “It just feels like they killed my mom and got away with it,” said Vanessa Betancourt, whose mother also suffered at a Genesis facility.
In July 2025, Genesis filed for Chapter 11 bankruptcy in Dallas, citing overwhelming legal costs of $8 million monthly to defend against lawsuits. The company’s strategy appears to leverage legal protections to potentially evade financial accountability for its negligence.
According to a KFF Health News investigation, the firm has managed to defer payments in multiple settlements, leaving families in limbo. In fact, Genesis has paid nothing in 85 cases and only partial amounts in others, despite being aware that insolvency was imminent.
Genesis, which operates around 165 nursing homes across 18 states, has been plagued by poor ratings from the Centers for Medicare & Medicaid Services, with 58% of its homes rated below average. The company has faced substantial fines, totaling $10 million, for violating federal health standards.
As the bankruptcy proceedings unfold, families of the deceased and injured residents fear they will receive little to nothing from their settlements. “They never had any intention to honor these deals,” said John Anthony, a bankruptcy attorney representing 340 personal injury claims against Genesis.
The company’s financial troubles trace back to a $1.5 billion leveraged buyout in 2007 by private equity firms, which burdened it with substantial debt. Despite attempts at recovery—including a $100 million loan from a private equity firm—Genesis remained on the brink of insolvency.
Genesis now seeks to sell its assets to its largest investor, raising alarms among creditors. Legal experts warn that this move could shield the company from further claims and allow new ownership to escape liability. In a recent court filing, U.S. Senators, including Elizabeth Warren, expressed concern that this bankruptcy may allow Genesis to wipe the slate clean at the expense of vulnerable residents and their families.
Families are left grappling with a painful reality. “They can file bankruptcy again,” said Gabe Betancourt, whose wife died after her stay at a Genesis facility. “And we’re the ones that will pay for it, with our memories, our lives.”
As the situation develops, creditors and advocates are closely monitoring the proceedings, hoping for accountability in a system that has repeatedly failed to protect the most vulnerable.
Stay tuned for more urgent updates on this developing story as the implications of Genesis HealthCare’s bankruptcy unfold.
