BROCKWAY, Pa. — A Central Pennsylvania healthcare company, Guardian Healthcare, has filed for Chapter 11 bankruptcy due to rising inflation, costs, and labor issues over the past few years.
On Monday, Guardian Healthcare, based in Brockway, announced that its facility Guardian Elder Care at Johnstown, LLC (also known as Richland Healthcare and Rehabilitation Center) and 19 other related entities have filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Western District of Pennsylvania. This includes their skilled nursing and related pharmacy and rehab businesses in Pennsylvania and West Virginia.
Locations in Central Pennsylvania:
- Guardian Elder Care at Hastings, LLC (Haida Healthcare and Rehabilitation Center), 397 3rd Avenue, Hastings, PA 16646
- Guardian Elder Care at Johnstown, LLC (Richland Healthcare and Rehabilitation Center), 349 Vo Tech Drive, Johnstown, PA 15904
- Guardian Elder Care at Brockway, LLC (Highland View Healthcare and Rehabilitation Center), 90 Main Street, Brockway, PA 15824
You can see a full list of their locations here.
Guardian officials say the bankruptcy filing is to ensure continued service for residents and to preserve important healthcare jobs. All facilities are operating normally.
Chief Restructuring Officer Allen Wilen from EisnerAmper LLP stated that the decision was made with residents’ best interests in mind. The bankruptcy process will help the company continue operating while focusing on resident care and safety.
Guardian Healthcare cited challenges such as the COVID-19 pandemic, labor shortages, rising wages, and increased reliance on costly agency labor as major financial difficulties. Despite efforts to regain stability, increasing inflation and labor costs made restructuring difficult, leading to the Chapter 11 filing.
Michael Herald, President & CEO, explained that the skilled nursing industry in Pennsylvania is in crisis. Despite their efforts, the company’s situation was no longer sustainable.
Guardian Healthcare has secured financing to support its operations during the bankruptcy process. They plan to seek court approval to sell eight of their skilled nursing facilities and to transfer operations of leased facilities to a new operator. Both transactions will need court approval.