Business Analysis of Genesis HealthCare

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Genesis HealthCare

GENESIS HEALTHCARE

Business Overview

Genesis HealthCare, Inc., together with its subsidiaries, owns and operates skilled nursing facilities and assisted/senior living facilities in the United States. The company operates through three segments: Inpatient Services, Rehabilitation Therapy Services, and All Other Services. It also provides a range of rehabilitation therapy services, including speech pathology, physical therapy, occupational therapy, and respiratory therapy. In addition, the company offers other specialty medical services, including management, physician, staffing, and other healthcare related services. As of December 31, 2016, it provided inpatient services through a network of 499 skilled nursing and assisted/senior living facilities, including 473 skilled nursing facilities and 26 stand-alone assisted/senior living facilities across 34 states. Genesis HealthCare, Inc. also supplied rehabilitation and respiratory therapy to approximately 1,700 healthcare locations in 45 states and the District of Columbia. The company was formerly known as FC-GEN Operations Investment, LLC and changed its name to Genesis HealthCare, Inc. in February 2015. Genesis HealthCare, Inc. was founded in 2003 and is headquartered in Kennett Square, Pennsylvania.

Genesis HealthCare

Genesis HealthCare


R&P Rank: 461
Sector: Healthcare Services
Industry:Healthcare Providers
H.Q Location:Pennsylvania
Website: www.genesishcc.com
Company Address:
101 EAST STATE STREET, KENNETT SQUARE PA 19348
Ph:610-444-6350

Business Analysis of Genesis HealthCare

The Healthcare Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Genesis HealthCare compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Genesis HealthCare to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Genesis HealthCare with an interactive chart.

  1. Revenue Growth: Genesis HealthCare reported a revenue growth of 2.0% year-on-year during 2016. Healthcare Providers Industry grew at 6.7% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Genesis HealthCare spent 27.2% of its total revenues on COGS. Healthcare Providers industry average (COGS share of revenue) in the same period was 26.8%
  3. R&D share of Revenues: Genesis HealthCare R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Genesis HealthCare spent 62.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Healthcare Providers industry average SG&A spending in the same period was 42.9%
  5. Inventory share of Revenues: Genesis HealthCare Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Genesis HealthCare invested 4.5% of its total revenues on Accounts Payable (A/P) Healthcare Providers industry average Accounts Payable investment in the same period was 5.3%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Genesis HealthCare invested 14.5% of its total revenues on Accounts Receivable (A/R). Healthcare Providers industry average Accounts Receivable investment in the same period was 15.3%
  8. PP&E share of Revenues: As a percentage of revenue, Genesis HealthCare invested 65.7% of its total revenues on Property, Plants, and Equipments (PP&E). Healthcare Providers industry average PPE investment in the same period was 39.5%
  9. Intangibles share of Revenues: As a percentage of revenue, Genesis HealthCare invested 10.8% of its total revenues on Intangibles. Healthcare Providers industry average Intangibles investment in the same period was 46.7%
  10. Net Margins: Genesis HealthCare Net Margins in the year 2016 were -1.1%. Healthcare Providers industry average Net Margins in the same period were 1.6%

Sector and Industry Association of Genesis HealthCare

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Genesis HealthCare is associated with Healthcare Sector Group, Healthcare Services Sector, and Healthcare Providers Industry.

Healthcare Services sector is comprised of the following industries: Drug Stores, PBM and Distributors; Healthcare Payers; Healthcare Providers; Medical Software; Healthcare Research Services. The definitions for each of the industries is as follows:

  • Drug Stores, PBM and Distributors industry includes nationwide drugstore chains, pharmacy benefit management (PBM) companies, and drug distributors. Drug stores also offer walk-in clinics and related pharmacy services. Distributors distribute branded and generic pharmaceutical and other healthcare products to hospitals, pharmacies and other healthcare providers. PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with drug manufacturers, and processing and paying prescription drug claims.
  • Healthcare Payers industry includes healthcare insurance companies that finance or reimburse the cost of health services. These companies also offer collaborative care, population health management, healthcare technology, Pharmacy Benefit Management, analytics, consulting and administrative services.
  • Healthcare Providers industry consist primarily of hospitals but recent changes in the health services industry have contributed to both increasing numbers of other types of facility providers. Companies in this industry include traditional healthcare providers and emerging healthcare facility providers like ambulatory surgery centers, behavioral healthcare facilities, dialysis clinics, home health care companies and others.
  • Medical Software industry includes companies that offer any software item or system used within a healthcare context. These companies offer standalone software used for diagnostic, therapeutic purposes, clinical financial and operational purposes.
  • Healthcare Research Services industry includes companies that offer biopharmaceutical development services, commercial outsourcing services; commercial pharmaceutical sales and service organizations, consulting, health information analytics and technology consulting.

Industry Ranking of Genesis HealthCare

With $5.7 billion revenues, Genesis HealthCare ranked number 8 of all the companies in the US Healthcare Providers industry. There were a total of 35 public companies in the US Healthcare Providers industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Healthcare Providers industry by revenues during 2016 were:

  1. HCA Holdings ($41.5 billion)
  2. Tenet Healthcare ($19.6 billion)
  3. Community Health Systems ($18.4 billion)
  4. DaVita ($14.7 billion)
  5. Universal Health Services ($9.8 billion)
  6. Kindred Healthcare ($7.2 billion)
  7. LifePoint Health ($6.4 billion)
  8. Genesis HealthCare ($5.7 billion)
  9. Brookdale Senior Living ($5 billion)
  10. Select Medical ($4.3 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Genesis HealthCareand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of genesis-healthcare

Universal Health Services (UHS) Business Analysis – Analyze Historical Performance, Strategic...

Universal Health Services Inc with $10 billion revenues in the year 2016 was the number 5 Healthcare Providers company. Read this report to know the top competitors of Universal Health Services and identify growth and cost optimization opportunities of Universal Health Services

Kindred Healthcare (KND) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Kindred Healthcare, Inc with $7 billion revenues in the year 2016 was the number 6 Healthcare Providers company. Read this report to know the top competitors of Kindred Healthcare and identify growth and cost optimization opportunities of Kindred Healthcare

LifePoint Health (LPNT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

LifePoint Health, Inc. with $6 billion revenues in the year 2016 was the number 7 Healthcare Providers company. Read this report to know the top competitors of LifePoint Health and identify growth and cost optimization opportunities of LifePoint Health

Brookdale Senior Living (BKD) Business Analysis – Analyze Historical Performance, Strategic...

Brookdale Senior Living Inc. with $5 billion revenues in the year 2016 was the number 9 Healthcare Providers company. Read this report to know the top competitors of Brookdale Senior Living and identify growth and cost optimization opportunities of Brookdale Senior Living

Select Medical (SEM) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Select Medical Holdings Corp with $4 billion revenues in the year 2016 was the number 10 Healthcare Providers company. Read this report to know the top competitors of Select Medical and identify growth and cost optimization opportunities of Select Medical

Envision Healthcare Holdings (EVHC) Business Analysis – Analyze Historical Performance, Strategic...

Envision Healthcare Holdings, Inc. with $4 billion revenues in the year 2016 was the number 11 Healthcare Providers company. Read this report to know the top competitors of Envision Healthcare Holdings and identify growth and cost optimization opportunities of Envision Healthcare Holdings

Revenues Analysis

Genesis HealthCare (GEN) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Genesis HealthCare, Inc. (GEN) from 2012 to 2016. Genesis HealthCare generated a total of $5.7 billion revenues during 2016. Genesis HealthCare reported a revenue growth of 2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Genesis HealthCare (GEN) Revenues And Revenue Growth From 2004 To 2016

This report provides the last thirteen years revenues and revenue growth of Genesis HealthCare, Inc. (GEN) from 2004 to 2016. Genesis HealthCare generated a total of $5.7 billion revenues during 2016. Genesis HealthCare reported a revenue growth of 2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Genesis HealthCare (GEN) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Genesis HealthCare, Inc. (GEN) revenue growth with Healthcare Providers industry growth during the last five years from 2012 to 2016. Genesis HealthCare reported a revenue growth of 2% year-over-year during 2016. The Healthcare Providers industry growth was 6.7% year-over-year during 2016. Genesis HealthCare growth was slower than the industry during 2016.