Bankruptcy Judge Approves Nearly $1B Sale of Genesis HealthCare’s 175 Nursing Homes — and Every One Stays Open

Dallas, Texas — A federal bankruptcy judge has approved the sale of Genesis HealthCare’s nursing home business to an affiliate of New Generation Health LLC for nearly $1 billion, closing the book on one of the largest skilled nursing bankruptcies in years — and keeping all 175 facilities open.

Judge Stacey Jernigan of the U.S. Bankruptcy Court signed off on the revised deal Wednesday, more than a year after Genesis filed for Chapter 11 protection in July 2025. The buyer, an entity called 101 West State Street LLC, takes over the chain’s operations and employees, including 22 Pennsylvania nursing homes that will run under a direct lease.

The approval did not come easily. In late September, the buyer tried to shrink its upfront cash obligations by $100 million while disputing the terms of a $97 million promissory note meant for unsecured creditors, according to reports. Jernigan ultimately approved reworked terms: the sale price held at nearly $1 billion, and the net cash heading to Genesis actually rose by about $15 million.

What happens to residents and staff

Although the transaction is structured as a liquidation, every one of the 175 facilities stays open. Some still need regulatory sign-off to formally change hands, so they will operate under interim managers and existing Genesis licenses in the meantime.

A Genesis spokesperson said center operations continue as usual, “with no interruption to patient and resident care,” and that employees move over to the new ownership with a continued commitment to care quality.

Loose ends remain. Claim reconciliation, professional fee approvals and any disputes with the buyer still need to be resolved before the case fully winds down.

The ruling marks a sharp turn for a company that spent months in court fighting over its own future. Earlier in the case, advocates warned that when a nursing home giant goes bankrupt, abuse victims often get left behind — a concern that shadowed the sale from the start.

For now, attention shifts to what New Generation’s affiliate does with its new portfolio: 175 buildings, and the residents and staff who just learned who signs the next paycheck.