Guardian Healthcare, a healthcare provider based in Central Pennsylvania, US, has executed voluntary proceedings under Chapter 11 of the US Bankruptcy Code for the Guardian Elder Care at Johnstown, along with several other affiliated entities.  

Petitions were submitted to the US Bankruptcy Court for the Western District of Pennsylvania, as per the announcement on 29 July.  

A total of 19 skilled nursing facilities across various US locations are included in the Chapter 11 filing. 

Guardian Healthcare said that affected facilities will remain operational and continue to deliver healthcare services. 

The company cited several factors contributing to its financial difficulties, including the persistent impact of Covid-19, wage inflation, reliance on costly agency staff, labour shortage, insufficient Medicaid reimbursement, and increasing provider assessments in Pennsylvania.  

Despite efforts to restore financial health, escalating inflation and labour costs since 2022 have hindered restructuring attempts. 

Guardian Healthcare has decided that filing for Chapter 11 is the optimal path to manage liabilities, facilitate operational transfers, and ensure continued care quality.  

The company plans to seek approval for the sale of eight owned facilities and the transition of leased facility operations to a new operator, subject to court approval. 

In a statement, the company said: “Guardian anticipates seeking Bankruptcy Court approval of the sale of eight of its owned skilled nursing facilities, with a purchaser serving as the 'stalking horse bidder' for such facilities and their related operations.” 

Additionally, the company is finalising a deal to transfer operations of its leased facilities, which will also require court endorsement. 

The healthcare organisation has assured that it is collaborating with all stakeholders to guarantee a seamless transition and a favourable outcome.  

Guardian Healthcare will continue to update the community and other stakeholders throughout the process. 

Founded in 1995, Guardian Healthcare has expanded to 23 skilled nursing communities and operates over 2,100 personal care, skilled nursing, and independent living units in Pennsylvania and West Virginia.  

The company also runs an in-house pharmacy.