Last week, a House of Representatives committee launched an investigation into how five large nursing home companies have handled COVID-19. Among the nursing homes under investigation are publicly traded Genesis Healthcare and Ensign Group, both of which have seen a drop in share prices since the announcement, according to Barron’s.
Genesis shares have fallen almost 7% since Tuesday’s announcement, and the stock is down more than 53% year to date. Ensign Group also declined slightly last week, and shares are down more than 7% so far this year.
These two firms, along with the three others called out in the investigation — Life Care Centers of America, SavaSeniorCare and Consulate Health Care — collectively operate more than 850 nursing facilities in 40 states, with more than 80,000 residents. During the pandemic, Genesis has had more than 1,500 deaths at its homes, whereas the other four companies saw 780 deaths, according to a press release from the House.
The House subcommittee sent letters to the firms requesting that they provide information about their ownership and organizational structures, as well as detailed lists of long-term care facilities they own and operate. The lawmakers also want to know resident demographic information, confirmed or suspected cases at facilities, supply information about personal protective equipment, complaint information, compensation for executives, and revenues.
The Centers for Medicare & Medicaid Services also is being investigated under the inquiry. The committee is seeking information regarding the agency’s enforcement of health and safety regulations during the crisis, data collection and provision of life-saving supplies.
The House coronavirus task force will hear from the CMS in a briefing on June 30, and the panel has asked the five companies to answer the inquiry by the same date.
This article appeared in the McKnight’s Business Daily, a joint effort of McKnight’s Senior Living and McKnight’s Long-Term Care News.
