Midwest Christian Villages, dba Christian Horizons, and its related companies filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. 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 to seniors in Illinois, Iowa, Indiana and Missouri. The organization will continue to operate as usual throughout the restructuring process. Its investment bank has been and continues to solicit and receive bids from going concern buyers in a marketing process.
A series of events has put significant pressure on the organization’s finances. First, resident and patient volumes sharply declined at the outset of the pandemic. Christian Horizons’ communities lost 25% to 30% of new residents and short-term rehabilitation stays for several months during the shelter-in-place policies.
Next, staffing shortages have caused a decline in the total number of employees available. As a result, the organization has utilized agency labor in most rural communities to meet minimum staffing requirements. This has meant an increase in labor costs.
Lastly, increased costs have sharply impacted the organization. The overall cost to provide care has increased by 10% to 30% in the procurement of goods and services needed. With the shortage of labor and the spike in inflation, Christian Horizons’ labor and other costs have increased by millions of dollars since 2022.
Kate Bertram was named CEO of Christian Horizons in July 2023 and has been committed to moving through these challenges. The organization filed its voluntary petitions in the U.S. Bankruptcy Court for the Eastern District of Missouri. The organization’s legal advisors are Dentons US LLP and Summers Compton Wells, and its investment bank is B.C. Ziegler and Company, with Nick Glaisner and Dan Revie working on the deal. Its chief restructuring officer is Healthcare Management Partners, LLC.
