ST. LOUIS — After years of mounting financial losses, a Ƶ County-based operator of nursing homes and retirement communities filed for bankruptcy this week, a move it blamed on lower resident numbers, staffing shortages and inflation.
The company, Christian Horizons, stressed that day-to-day life in its communities will continue as usual over the coming months, as it markets the sites to prospective buyers.
Christian Horizons is based in Creve Coeur and operates about a dozen nursing homes and assisted living facilities in Illinois, Indiana, Iowa and Missouri. It doesn’t operate any facilities in the Ƶ metro area, but it has one home in Joplin and a handful in central Illinois.
In court filings and public statements, the company described a series of setbacks suffered by many in the long-term care industry, which ultimately led to the bankruptcy proceedings.
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In recent years, CEO Kathleen Bertram wrote in court filings, costs for labor, food, vendor services and construction projects rose.
The company pandemic-era staffing shortages forced it to become more reliant on short-term contract workers hired through agencies, a system that is typically more expensive than permanent staff.
And for a period of time in the early days of the pandemic, admissions and short-term rehabilitation stays dropped 25% to 30%, adding further financial pressure. The phenomenon was common in the industry, as older adults opted, when possible, to avoid nursing homes and assisted living communities and instead receive care at home.
Though inflation has eased, the costs of the goods and services needed to provide care are still up 10% to 30%, Christian Horizons said. The company’s operating losses have grown steadily, totaling nearly $28 million in its 2024 fiscal year, up from a $5 million loss in its 2019 fiscal year, according to court filings.
The company began contacting potential buyers in May, according to court filings, and has received interest from multiple parties. David Sosne, an attorney representing Christian Horizons in the case, said during a hearing Wednesday that the company may seek a buyer for all of the facilities, or two or three different buyers to purchase groups of facilities.
Dora Silvia, senior vice president of sales and marketing, said Wednesday that residents and families have been notified of the bankruptcy proceedings, and the company is not making any staffing changes. Christian Horizons aims to wrap up the process by the end of 2024.
“It will be business as usual,” Silvia said. “Residents should expect to receive the same care and services that they’ve come to expect from Christian Horizons.”
Christian Horizons has more than 960 employees, and its communities have more than 1,000 residents. The company also operates a pharmacy business that serves most Christian Horizon facilities and about a dozen others.
In the past year, the company sold off two facilities, and Brentwood-based Lutheran Senior Services acquired its home care program, which offered long-term medical, social and personal care to seniors.