Owner of skilled nursing facilities in Lower Burrell, Greensburg files for bankruptcy

Guardian Elder Care, the parent company of skilled nursing facilities including Belair in Lower Burrell and Oak Hill in Greensburg, filed for Chapter 11 bankruptcy protection.

The Johnstown-based health care company filed the petition for relief this week. Nineteen facilities — including locations in Lower Burrell, Greensburg, Bethel Park and Munhall — were included in the filing.

“All our facilities remain open and focused on delivering quality care, ensuring the health and safety of residents and assisting families,” Guardian CEO Michael J. Herald said in a statement. “Through the in-court restructuring, we seek to enter into agreements with third parties to continue the operations and facilitate the timely transfers of operations for our facilities. We are committed to working with all parties in interest to ensure a smooth transition of operations and a positive resolution.”

Guardian officials said they anticipate seeking bankruptcy court approval to sell eight skilled nursing facilities, with a purchaser serving as the “stalking horse bidder” for those facilities and their operations.

Guardian is pursuing a transaction to transfer operations of its leased skilled nursing facilities to a new operator. That also is subject to bankruptcy court approval.

Factors that led to the filing, Herald said, include lingering effects of the covid-19 pandemic, labor shortages, rising wage inflation, increased reliance on high-cost agency labor, inadequate Medicaid reimbursement and mounting provider assessments in Pennsylvania.

“Facing these economic realities, we took steps to restore the organization to financial stability,” he said. “Despite our best efforts, rapidly increasing inflation and rising labor costs limited the ability to restructure successfully. To obtain relief from certain mounting liabilities, the company attempted to negotiate for over a year with key stakeholders. Unfortunately, those negotiations did not result in sufficient financial relief. It was subsequently determined that a voluntary petition under Chapter 11 was the best option for the company to pursue a transfer of operations for the facilities.”

Herald said operations will continue as usual during the court process.

“Despite the bankruptcy filing, there should be no discernable change in resident care,” he said. “Resident care is always a priority, and we will continue prioritizing quality care and services during the transition period.”

Court filings and more information are available on a website administered by claims agent Omni Management Group at omniagentsolutions.com.

“We will continue to staff based on the facility census and resident care needs during the bankruptcy process, just as we do today,” Herald said.