Wide range of services
Genesis Healthcare’s (GEN) therapists and assistants provide speech pathology, physical therapy, occupational therapy, and respiratory therapy services at the company’s centers as well as by contract to healthcare facilities operated by others.
Recently, Genesis Healthcare expanded into providing rehabilitation services in community-based and at-home settings as well as internationally in China.
Other specialty medical services offered by Genesis Healthcare include management services, physician services, and staffing services.
Genesis Healthcare operates in three business segments: inpatient services, rehabilitation therapy services, and other services.
The inpatient services business is made up of skilled nursing facilities, assisted living facilities, and the administration of third-party facilities. In 3Q17, this business generated $1.1 billion in revenue compared to $1.2 billion in 3Q16. At 86%, inpatient services contributed the most to Genesis Healthcare’s total revenue. The fall in the business’s revenue was due to lower occupancy levels and shorter lengths of stay.
Rehabilitation and other services
The rehabilitation services business consists of therapy services and generated $151.8 million in revenue in 3Q17 compared to $160.3 million in 3Q16. This fall was the result of lost contract business and reduced volume of services provided.
At $33.9 million, the other services business contributed 2.6% to Genesis Healthcare’s total revenue in 3Q17 compared to $34.3 million in 3Q16.
Major sources of revenue
Genesis Healthcare receives a major part of its revenue from two sources: Medicare and Medicaid. In 3Q17, the company received 22% of its revenue from Medicare and 57% of its revenue from Medicaid. Revenue from insurance and private pay contributed a combined 21% to Genesis Healthcare’s total revenue in 3Q17.
In the next part of the series, we’ll take a look at some of the key risks facing Genesis Healthcare in 2018.