Genesis and its ACO accuse former execs of stealing trade secrets, participants. August 27, 2026 Genesis HealthCare and its accountable care organization are suing a group of former executives, alleging they stole trade secrets, client information and financial models to fuel the "rapid ascent" of a competitor they formed. LTC ACO, which was the nation's first plan solely serving nursing home and assisted living residents, became a performance juggernaut for Genesis after its 2016 launch. Through 2024, it had generated more than $198 million in total Medicare savings and earned about $140 million in performance payments. Early in its bankruptcy case, Genesis cleared the way for the ACO to continue operating and distribute payments to qualified plan participants in accordance with Medicare Shared Savings Program rules. Now, more than a year into Chapter 11, Genesis is accusing LTC ACO's former acting president and four other high-ranking staff members of taking advantage of the larger company's bankruptcy to spread disinformation for their own gain. This is the latest filing in which new leaders of the Genesis brands have formally accused past insiders of using the once-mighty company to their own advantage. In Tuesday's complaint, Genesis accused Kristen Krzyzewski of retaining "significant volumes of LTC ACO's confidential information" and recruiting former staff members - including some with non-compete clauses - to help launch her own plan, operating as True LTC. Reached by McKnight's Long-Term Care News Wednesday, Krzyzewski shared a statement saying True LTC "takes its legal and contractual obligations seriously." "True LTC disputes the allegations and intends to defend its position through the legal process," the statement said. "Because the matter is pending before the court, we have no further comment at this time." Rapid ascent. The lawsuit said Krzyzewski resigned in February, formed True Holdings four days later and publicly unveiled her ACO this summer. "True's sudden emergence was possible only because the Individual Defendants' theft of LTC ACO's valuable trade secrets facilitated its rapid ascent, letting True skip the time, effort, and resources that LTC ACO invested to develop its own business," Genesis attorneys said this week. "Defendants wasted no time putting the Debtors' valuable assets to use. Defendants used LTC ACO's trade secrets in soliciting several provider groups, including LTC ACO's largest client, to leave LTC ACO and join True." Among True tactics outlined in the complaint are using terms that mirror or undercut LTC ACO's own operating agreements and spreading false "fear, uncertainty and doubt about LTC ACO's ability to pay the provider groups under the terms of their existing agreements while in bankruptcy." Among exhibits included with the lawsuit are a cease-and-desist letter sent to True and another from LTC ACO and Genesis buyer 101 W. State Street underscoring the plan's approval to pay shared savings moving forward. This isn't the first time during the bankruptcy proceedings that Genesis has gone after former insiders or executives. Early in the year, the company accused lenders Wax Dynasty Partners and MAO 22322 and their owners David Gefner and Joel Landau of buying debts to create a future claim, even though a landlord had twice considered forgiving that debt. That adversarial case was included as part of a broader settlement this month. In June, the company also accused Landau and then-CFO Jonathan Kirschner of "looting" that led to $50 million in losses. 'Point of no return' In this latest case, the losses are yet to be fully realized, but Genesis is seeking an injunction against True saying its "scheme is nearing the point of no return." Its initial participant list sent to CMS this month listed several current LTC ACO provider participants. CMS requires such participant overlaps to be resolved by Sept. 8, 2026. "If True's unlawful conduct succeeds in diverting these providers, LTC ACO will lose the providers, the Medicare beneficiaries associated with them, and the resulting economic value for the entire 2027 performance year," attorneys wrote. "And if any overlap remains unresolved after September 8, CMS may deny the providers' participation in both ACOs for 2027 - even if a provider ultimately chooses to remain with LTC ACO." Genesis and LTC ACO are also seeking possible damages.

ApprenticeshipNH partners with Genesis HealthCare for dual Registered Apprenticeship Programs. * June 30, 2026 * Posted by ApprenticeshipNH Team Genesis HealthCare has become a registered statewide sponsor of two Registered Apprenticeship Programs (RAPs) through ApprenticeshipNH, a workforce training program of the Community College System of New Hampshire (CCSNH). The Licensed Nursing Assistant (LNA) and Recreation Assistant programs will expand access to healthcare careers for Granite Staters across New Hampshire. "New Hampshire has the second-oldest population in the country, and the need for skilled healthcare workers has never been greater," said Michael Piaseczny, ABA hub developer west, ApprenticeshipNH. "This partnership with Genesis HealthCare creates a direct pathway into a growing field - one where apprentices earn while they learn and gain credentials that will serve them for a lifetime." The LNA program was developed in collaboration with Dartmouth Health's Geriatric Center of Excellence, and a Geriatrics Workforce Enhancement Program (GWEP) grant through the Health Resources and Services Administration. The Dartmouth GWEP collaborates with external partners to implement innovative solutions for training and educating the healthcare workforce in rural, underserved areas that care for older adults in long term settings. The program is currently piloting at three Genesis HealthCare affiliated centers in the Monadnock Region: Keene Center, Applewood Center and Pheasant Wood Center. "Partnerships are critical to our work. By establishing the LNA apprenticeship program, ApprenticeshipNH and Genesis champions enable the GWEP to implement innovative models like the teaching nursing home and behavior rounds for dementia care, models which mutually benefits residents, staff, and learners," said Ellen Flaherty, PhD, APRN, AGSF, FAAN, vice president of the Dartmouth Health Geriatric Center of Excellence and principal investigator of the Geriatrics Workforce Enhancement Program. Apprentices receive paid, hands-on training with one-on-one mentorship from experienced nurses and healthcare providers, with LNA coursework costs covered. Upon licensure, apprentices earn a portable, nationally recognized credential from the U.S. Department of Labor's Office of Apprenticeship and a clear pathway to continued career growth within Genesis HealthCare. "Investing in the next generation of healthcare professionals is essential to ensuring high-quality care for the residents and patients we serve," said Nicole Kaufman, chief transformation officer for Genesis HealthCare. "By partnering with ApprenticeshipNH, we are creating accessible pathways into healthcare careers, providing apprentices with hands-on experience, mentorship, and opportunities for continued growth within our affiliated centers." The Recreation Assistant program prepares apprentices to support the recreational and psychosocial needs of residents in long-term care settings, building the clinical knowledge and interpersonal skills required for quality activity programming. The approximately two-year program includes a minimum of 288 hours of related instruction drawn from WorkReadyNH professional skills training, nutrition courses offered through Great Bay Community College, River Valley Community College and American Red Cross certification. The apprenticeship provides a pathway for career growth within Genesis HealthCare affiliated centers, including the opportunity to pursue a Recreation Director role.

Formation Capital, which acquired Genesis nearly two decades ago utilized leveraged buyouts, sale-leaseback transactions and layered debt to extract value from the operator, while Genesis struggled to stay viable, according to the report.