GenesisCare’s voluntary reorganisation
On 1 June 2023, GenesisCare announced the filing of a petition for voluntary reorganisation under Chapter 11 of the US Bankruptcy Code. For more information on GenesisCare’s restructuring, please click the following link: https://restructuring.ra.kroll.com/GenesisCare.
GenesisCare files for voluntary reorganisation under Chapter 11 in the US
Prioritising patient care
Following an in-depth review of our business, GenesisCare has filed for voluntary reorganisation under Chapter 11 of the United States Bankruptcy Code to restructure our business. This process will enable us to separate our US business from our businesses in Australia, Spain and the UK, ultimately ensuring a more sustainable financial and operational foundation and the continued delivery of high-quality care for our patients in all four regions.
We are simplifying our organisational structure to prioritise national leadership, appreciating that healthcare is best managed locally with direct and regular engagement with our doctors, referrers, partners, and patients.
GenesisCare has secured commitments for a A$300 million financing facility from existing lenders to support its business operations. This facility will allow GenesisCare to continue meeting its obligations―including to patients, doctors, employees, hospital and health service partners and suppliers―while financially restructuring and reorganising the business.
As part of the business transformation, GenesisCare intends to explore separation of its US business from its businesses in Australia, Spain, and the UK, creating two platforms. This is a positive development aimed at resetting the businesses’ capital structure to a more sustainable footing, ensuring we can continue to grow and focus on maintaining and improving all important patient care.
For GenesisCare in Australia, our priority is ensuring uninterrupted high-quality patient care. GenesisCare in Australia will continue to operate normally during the Chapter 11 process and patient care will not be affected.
Our Australian business is showing strong momentum, with year-over-year growth in treatment volumes and nearly four in 10 radiation therapy patients nationwide treated by GenesisCare.
We play a critical role in communities across Australia, and this will continue – at 41 sites across five states, we serve more than 30,000 patients each year to further our mission of helping people live longer, better quality lives.
Frequently asked questions
What does this mean for patients? Will treatment be interrupted?
Patient care will be unaffected. GenesisCare in Australia will continue to operate normally during the Chapter 11 process.
Can patients still access Medicare rebates?
Patient care will be unaffected. This includes how patients receive Medicare rebates and refunds. Eligible patients will continue to be offered bulk billing.
What does this mean for GenesisCare’s US business?
GenesisCare has filed a voluntary petition for reorganisation under Chapter 11 of the United States Bankruptcy Code to allow it to commence a comprehensive transformation process intended to position the business for long-term growth. As part of this transformation, GenesisCare intends to separate its US business from its businesses in Australia, Spain and the UK.
GenesisCare in Australia will continue to operate normally during the Chapter 11 process, serving our patients and other stakeholders without interruption.
Is the Australian business going to require a similar process?
No. The outlook for the Australian business is strong, with year-on-year growth in treatment volumes.
GenesisCare plays a critical role in communities across Australia, and this will continue – at 41 sites across five states, we serve more than 30,000 patients each year to further our mission of helping people live longer, better quality lives.
How long will the reorganisation process take?
We anticipate the process will take several months. However, there will be no interruption to the high-quality care we provide to our patients during this time.
How will doctor partnerships with GenesisCare work in the future?
GenesisCare's relationships with doctors will continue as they always have.
Will GenesisCare’s partnerships with hospitals be impacted?
GenesisCare's partnerships with hospitals will continue as they always have.
Where do I go for further information?
Our website will be updated regularly with any developments.
For any media enquiries, please contact Scott McFarlane at email@example.com
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