Genesis said its management contracts at the eight nursing homes generated about $3.8 million in annual revenues and $1.2 million, or 3 cents a share, in annual earnings.
NewCourtland said it gave Genesis 30 days notice that the management agreements would be terminated on July 31.
``In the case of this particular management contract they [Genesis] were charged with acting in place of the owner in running those facilities,'' said Gail Kass, president and CEO of NewCourtland.
But Genesis said the termination of the contracts was ``inappropriate.'' The company said it made significant efforts to work with NewCourtland and its employees to fix the problems at Cobbs Creek and bring the nursing home into regulatory compliance and has told NewCourtland that it has the right to contest the state's decision to close the facility.
Genesis also said the other NewCourtland facilities it managed were in full compliance with state regulations.
Genesis owns and operates more than 330 nursing homes in the eastern and mid-western United States, including 52 ``eldercare centers'' in Pennsylvania.
NewCourtland is a nonprofit subsidiary of the Presbyterian Foundation for Philadelphia.
Rehabilitation Care Consultants Inc. of Madison, Wis., which replaced Genesis at Cobbs Creek to oversee the shutdown and the relocation of residents, will take over management of the other NewCourtland facilities on Aug. 1.
``What we are focusing on for the rest of our network is the clinical areas, that is where their expertise is and that were we expect their focus to be,'' said Kass.
Cobbs Creek, at 6900 Cobbs Creek Parkway, has been relocating residents since it was ordered to close by the state. Kass said there are fewer than 50 people still living at Cobbs Creek and she expects to relocate the remaining residents by July 23 as mandated by the state.
