Times Observer photo by Josh Cotton The ownership of Kinzua Healthcare and Rehabilitation Center recently changed as a result of an action by the U.S. Bankruptcy Court for the Western District of Pennsylvania. This facility was one of 11 to transfer ownership as part of the proceeding.

A Warren nursing home has changed hands as part of a federal bankruptcy proceeding.

Kinzua Healthcare and Rehab Center is one of 11 facilities subject to the transfer from Guardian Healthcare to Oxford Valley Health.

A notice announcing the proposal was published last month in the Times Observer and Guardian Healthcare said the transfer was approved on Sept. 24 by the U.S. Bankruptcy Court for the Western District of Pennsylvania.

“All the facilities remain open and are focused on delivering quality care,” Guardian Healthcare said in a post on its website. “The targeted transaction closing date is October 14, 2024.

“From the beginning, our commitment has always been to our residents and employees,” Guardian said. “This transaction will enable all facilities to remain open and focused on resident care and services.

“The Guardian leadership team remains committed to working with Oxford Valley Health to ensure a seamless transition for residents. We appreciate the unwavering dedication of all Guardian employees to continue delivering quality care to our residents through this process.”

Each of the facilities – including facilities in Clarion, Oil City, Shippenville and Titusville, among others – is listed as its own limited liability corporation.

In a separate website post, the company outlined what led to the bankruptcy filing.

“Strong industry headwinds in recent years caused financial challenges for many skilled nursing providers, including Guardian Healthcare,” the post said. “Factors that led to this 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.

“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.”

They determined that a Chapter 11 filing “was the best option to address outstanding liabilities, successfully transfer operations, and maintain quality care for residents at all facilities.”