Genesis Sells 20 Million In Property

POSTED BY: George Hiotis
Tuesday, December 28, 2010 - 12:10 PM
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Some big news when it comes to Healthcare in Zanesville and Southeastern Ohio. Genesis HealthCare System has sold millions of dollars in property to a real estate investment trust. After paying associated debt, Genesis received around 20-Million dollars for the property which includes buildings that house outpatient services, administrative support functions and physicians practices. The sale does not include Bethesda or Good Samaritan Hospitals. It is part of Genesis’ planned asset reallocation. In a press release Genesis announced that the properties were sold to Nationwide Health Properties Incorporated which invests in health care real estate in the United States. Chief Financial Officer Paul Masterson says with this sale, Genesis will retain ownership of the land as well as decisions about the types of tenants who rent or lease the buildings that are next to the hospitals. Genesis and several local doctors will lease back many of the properties for continued use. The funds from the sale will primarily be used to help pay for the Genesis Electronic Medical Record System.

(Read The Official Press Release)

Genesis HealthCare System recently sold several real estate properties to Nationwide Health Properties, Inc., a real estate investment trust (REIT) that invests primarily in health care real estate in the United States. After paying associated debt, Genesis received approximately $20 million for the properties, which include buildings that house outpatient services, administrative support functions and physician practices. This sale does not include either of the hospitals.
The sale is part of the organization’s planned asset reallocation to support its growth-oriented strategic initiatives. The funds from the sale will primarily be used to help pay for its electronic medical record system.
“Over the years, Genesis has built or purchased medical office buildings to house physicians or to provide outpatient services that would be more convenient and less costly for the community if they were not provided in the hospital buildings,” stated Paul Masterson, Genesis chief financial officer.
“Providing health care services is our core business, and we must continually invest in state-of-the-art technology, facility and service enhancements to meet community need. While we need facilities from which to provide outpatient medical services, it is not necessary for us to own the facilities. Our real estate holdings were assets that could create considerable cash flow for our growth-oriented development plans, so we decided to get out of the real estate business by selling the buildings and investing the money received in our mission-critical initiatives,” he added.
With this sale, Genesis will retain ownership of the land as well as decisions about the types of tenants who rent or lease the buildings that are adjacent to hospitals. Genesis and several local physicians will leaseback many of the properties for continued use.

About Genesis HealthCare System
Genesis HealthCare System, based in Zanesville Ohio, is a regional provider for several health care services. In addition to the skilled home care program, Genesis operates an acute care hospital encompassing two locations – Genesis-Bethesda and Genesis-Good Samaritan, in Zanesville. The organization also operates a retail pharmacy, fitness center, personal care and homemaker assistance home care agency, oxygen and medical equipment company, and child care facility. It also has several outpatient satellite facilities located throughout southeast Ohio. To learn more about Genesis HealthCare System, visit our web site at www.genesishcs.org.

About Nationwide Health Properties
Nationwide Health Properties, Inc. is a real estate investment trust (REIT) that invests primarily in healthcare real estate in the United States. As of September 30, 2010, the Company's portfolio of properties, including mortgage loans and properties owned by unconsolidated joint ventures, totaled 637 properties among the following segments: 287 senior housing facilities, 211 skilled nursing facilities, 120 medical office buildings, 11 continuing care retirement communities, 7 specialty hospitals and 1 asset in development. For more information on Nationwide Health Properties, Inc., visit the website at http://www.nhp-reit.com.

 


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