CEO of Genesis Healthcare facilities, George Hager Jr., received a hefty $5.2 million bonus. Creatively referred to as a “retention payment,” the details surrounding the outrageous sum of money is suspect. CBS News reports Hager Jr. is “at the helm of the large U.S. nursing home chain during a pandemic that has killed more than 1,500 of its residents and threatens to push it into bankruptcy.”
Genesis Healthcare facilities were so dire, it even caught the attention of lawmakers. Members of a House panel looking into COVID impacts wrote to Hager in June of 2020. The letter stated: “More than 1,500 Americans have died and many more have been infected at facilities owned by your company, with at least 187 of your facilities reporting cases of the coronavirus.”
The horror increased twofold as the death toll at Genesis nearly doubled in the latter half of 2020, “with 14,352 confirmed cases among its residents and 2,812 deaths as of December 20” according to the Washington Post. Nonetheless, Hager received his millions of dollars bonus in late October.
In less than three months after unjustifiably receiving the asinine amount of money, Hager retired earlier this month. Hager has served in his position as chief executive for 17 years. Even more information has emerged, showing how clearly disgraceful the large bonus was.
On November 9, Hager released an earnings report stating, “the virus continues to have a significant adverse impact on the company’s revenues and expenses.” The earnings report explained a net loss of $62.8 million for the third quarter of 2020. “There is no question Genesis will need ongoing support from the federal government and our capital partners to sustain operations” Hager said on an earnings call that day. CBS News reports Hager will continue on as a consultant for the company, with board chairman Robert Fish taking over as CEO.
