Genesis HealthCare - currently in bankruptcy, being sold for $996 million - just asked a federal judge for permission to pay nearly $10 million in bonuses to executives and employees because people keep quitting and the sale keeps getting delayed. The breakdown: $6.6 million to 358 employees whose retention bonuses are being bumped up 33% because the process is taking longer than planned, $1.6 million to 12 senior execs who hit their 2025 goals, and $1.5 million to 10 senior managers under a new retention plan - some of whom Genesis admits are "insiders" under bankruptcy law.
Meanwhile, occupancy dropped 2.6% last year, residents are nervous, staff is bailing, and creditors who actually provided goods and services to Genesis facilities are watching bonus money fly out the door while they wait to find out if they'll get 50 cents on the dollar. Retention bonuses in bankruptcy are standard - but $10 million in incentives while you're insolvent hits different when you're the vendor still waiting on your invoice.