Healthcare Services Falls on Charges Tied to Genesis Bankruptcy

Healthcare Services Group fell as much as 9.1% — the most intraday since July 2024 — after forecasting a 2Q charge of 62c a share and a 3Q charge of 3c to 4c a share following the Chapter 11 bankruptcy filing of its client Genesis HealthCare on July 9.

• HCSG provides services to 164 Genesis facilities
• As of July 9, HCSG held $50 million in accounts receivable and $14.4 million in notes receivable from Genesis, net of reserves

YEAR FORECAST

• Still sees revenue growth mid-single digit
• Still sees cash flow from ops $60 million to $70 million

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