ST.
LOUIS, July 16, 2024 /PRNewswire/ -- Midwest
Christian Villages dba Christian Horizons and its related companies
today announced it has filed voluntary petitions for reorganization
under Chapter 11 of the U.S. Bankruptcy Code. Christian Horizons
will continue to operate as usual throughout the restructuring
process, maintaining its commitment to providing quality care and
services. The Company's investment bank has been and continues to
solicit and receive bids from going concern buyers in a marketing
process.
Christian Horizons is one of the nation's largest
not-for-profit, faith-based organizations delivering skilled
nursing, assisted and supportive living, independent living, and
pharmacy services. The organizations serve older adults in
Illinois, Iowa, Indiana, and Missouri.
"Christian Horizons' teams have played an important role in
serving and supporting older adults for over 60 years," said
Kate Bertram, Chief Executive
Officer of Christian Horizons, who joined the organization in
March 2022. "We are grateful for the
opportunity to have served so many residents and families in the
region."
History of Financial Pressures
A series of events has put significant pressure on the company's
finances. These include:
- Resident and patient volumes sharply declined at the outset
of the COVID-19 pandemic. As the country navigated the
uncertainties of the COVID-19 pandemic, Christian Horizons
experienced a significant reduction in the number served by the
ministry in all care and program areas. This was attributed to many
older adults remaining in their previous setting as a national
trend. Christian Horizons' communities lost 25 to 30 percent of new
residents and short-term rehabilitation stays for several months
during the shelter-in-place policies, leading to significant
financial pressures.
- Staffing shortages cause a decline in the total number of
employees available. Continuing to recover from COVID-19
pressures, staffing shortages became an obstacle due to the
decreasing number of available workers across the rural communities
served. As a result, the lack of associates for work caused the
organization to utilize contract labor (agency) in most rural
communities to meet minimum staffing requirements. With the
simultaneous shortage and spike in inflation, Christian Horizons'
labor and other costs have increased by millions of dollars since
2020. While the market demand for services for older adults will
continue to increase, clinicians available to work will continue to
be in short supply.
- Increased costs sharply impact the
organization. While overall inflationary pressures have
eased somewhat the overall cost to provide care has increased by
between 10 and 30% in the procurement of goods and services
needed.
Kate Bertram was named Chief
Executive Officer in July of 2023 and has been committed to moving
the organization through these challenging times. The leaders and
associates have undertaken wide-ranging and proactive efforts to
help Christian Horizons weather these financial
pressures.
Christian Horizons filed its voluntary petitions in the U.S.
Bankruptcy Court for the Eastern District of Missouri. Further information about the
Chapter 11 case is available on the website of Verita, the claims
and noticing agent, at veritaglobal.net/MCV.
The organization's legal advisors are Dentons US LLP and
Summers Compton Wells, and its investment banker is B.C. Ziegler
and Company, and its chief restructuring officer is Healthcare
Management Partners, LLC.
About Christian Horizons
As a faith-based, not-for-profit organization, Christian Horizons
Living is in service to a mission of honoring God by offering a
full continuum of care and support services to older adults in 4
states. Based in St. Louis,
Missouri, the organization owns and operates a portfolio of
seven life plan campuses and five stand-alone older adult
communities offering a mix of independent, assisted and supportive
living; memory support; long-term healthcare centers and short-term
rehabilitation. The organization also serves older adults through
Senior Care Pharmacy Services.
For additional information,
visit www.christianhorizonsliving.org
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SOURCE Christian Horizons