Genesis HealthCare (Genesis or the Company) announced that it has entered into a series of agreements with New Generation Health, LLC. Genesis will transition operational responsibility for 19 facilities in the states of California, Washington and Nevada. Effective February 1, 2020, Genesis sold the real estate and operations of six skilled nursing facilities and transferred the leasehold rights to 13 skilled nursing, behavioral health and assisted living facilities, for a total of $79 million. Genesis will retain an indirect 50% interest in the facilities. Net transaction proceeds were used by Genesis to repay indebtedness and fund its indirect investment. Genesis is currently assessing whether it will continue to consolidate the financial statements of these facilities for financial reporting purposes. Concurrently, the facilities have entered, or will enter upon regulatory approval, into management services agreements with NewGen for the day-to-day operations of the facilities. Genesis will continue to provide administrative and back office services to the facilities pursuant to administrative support agreements, as well as therapy services pursuant to therapy services agreements.