Brockway, PA-based Guardian Healthcare has filed for Chapter 11 bankruptcy protection.

The company, founded in 1995, operates 19 skilled nursing facilities in Pennsylvania and West Virginia, as well as three senior living communities and an in-house pharmacy.

“Strong industry headwinds in recent years caused financial challenges for many skilled nursing providers, including Guardian Healthcare. Factors that led to action include lingering effects of COVID, labor shortages, rising wage inflation, increased reliance on high-cost agency labor, inadequate Medicaid reimbursement and mounting provider assessments in Pennsylvania,” Guardian said in a statement on Monday. 

“Facing these economic realities, Guardian Healthcare took steps to restore the organization to financial stability. Despite its best efforts, rapidly increasing inflation and rising labor costs beginning in 2022 limited the ability to restructure successfully,” the statement continued.

If the court approves, restructuring will include the sale of eight of Guardian’s owned SNFs, with a purchaser serving as the “stalking horse bidder” for the sale. In addition, Guardian said that it is pursuing a transaction that would transfer the operations of its leased SNFs to a new operator.

The Monday filing in the US Bankruptcy Court for the Western District of Pennsylvania included 19 SNFs:

  • Guardian Elder Care at Beaver Falls, Beaver Falls, PA;
  • Guardian Elder Care at Bethel Park; Bethel Park, PA;
  • Guardian Elder Care at Brockway, Brockway, PA;
  • Guardian Elder Care at Clarion, Clarion, PA;
  • Guardian Elder Care at Erie II, Erie, PA;
  • Guardian Elder Care at Fairmont, Fairmont, WV;
  • Guardian Elder Care at Greensburg, Greenburg, PA;
  • Guardian Elder Care at Hastings, LLC d/b/a Haida Healthcare and Rehabilitation Center, Hastings, PA;
  • Guardian Elder Care, Johnstown, PA;
  • Guardian Elder Care at Lewistown, Lewistown, PA;
  • Guardian Elder Care at Lower Burrell, Lower Burrell, PA;
  • Guardian Elder Care at Monongahela, Monongahela, PA;
  • Guardian Elder Care at Munhal, Munhall, PA;
  • Guardian Elder Care at Oil City, Oil City, PA;
  • Guardian Elder Care at Shippenville, Shippenville, PA;
  • Guardian Elder Care at Titusville, Titusville, PA;
  • Guardian Elder Care at Uniontown, Uniontown, PA;
  • Guardian Elder Care at Waynesburg, Waynesburg, PA; and
  • Guardian Elder Care at Warren, Warren, PA. 

According to Guardian Healthcare, all of the nursing homes will remain open during the bankruptcy process.