Wednesday, July 31, 2024

Crisis in senior care: 19 more nursing homes in Pa., West Virginia declare bankruptcy


by Kris B. Mamula

Guardian Healthcare, a Jefferson County-based long-term care provider for seniors, has filed for voluntary protection from creditors under Chapter 11 of the U.S. Bankruptcy Code, affecting 19 nursing homes, pharmacies and related businesses in Pennsylvania and West Virginia.

All Guardian facilities are operating as normal as the for-profit Brockway-based company undergoes financial reorganization. Included in the filing were facilities in Bethel Park and Munhall in the Pittsburgh area and Beaver, Clarion, Erie, Fayette, Greene, Washington and Westmoreland counties.

“This action was taken to facilitate the divestitures and transfers of operations of its facilities, ensure continued services for its residents and preserve critical health care jobs,” the company said in a statement.

Guardian listed assets ranging between $1 million and $10 million and liabilities of $10 million to $50 million.

Guardian’s financial woes were blamed on the lingering effects of the COVID-19 pandemic, labor shortages, wage inflation, new minimum staff-to-patient ratios and other factors. “Many more (providers) ultimately face closure,” the company said.

“Skilled nursing providers in Pennsylvania are facing a crisis in the current environment,” Guardian President and CEO Michael Herald said in a prepared statement. “Guardian Healthcare attempted to do everything possible to overcome this crisis. Despite these efforts and faced with the industry environment in Pennsylvania, Guardian’s current situation is unsustainable.”

Guardian Healthcare, which was founded in 1995 and operates more than 1,700 skilled nursing and personal care units, is the latest senior care provider to file for reorganization in bankruptcy court. In May and June, 21 skilled nursing facilities filed for bankruptcy protection, including 12 in the Pittsburgh area.

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Crisis in senior care: 19 more nursing homes in Pa., West Virginia declare bankruptcy

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