Hospice and home health provider Charter Healthcare, which is a portfolio company of Pharos Capital, recently filed for Chapter 7 bankruptcy without making any public announcement. The petition for bankruptcy was filed in the Federal District Court of Delaware in late January, as indicated by documents obtained by Hospice News. Public record search revealed Chapter 7 filings for Charter locations in at least eight states, covering the company’s entire footprint. The company’s headquarters were in California, and Charter’s website is also no longer operational.
As of February 2023, Charter provided hospice, home health, complex care management, and palliative care services to approximately 13,000 patients under various brand names. Liquidation under Chapter 7 is an option for individuals or businesses who are unable to meet their debt obligations and choose to wind down their operations, with a court-appointed trustee tasked with converting assets into cash for creditor distribution. Court filings show Charter’s total liabilities to creditors near $37 million.
Despite the bankruptcy filing, Pharos, Charter’s private equity backer, did not provide responses to inquiries from Hospice News. Court filings also mention Charter CEO Cheryl Lovell, who had assumed the position early last year but is no longer listed as a current employee on her LinkedIn profile. The company had been actively acquiring hospice and home health organizations as recently as 2021 when it purchased The Providence Hospice and The Providence Home Health Services Inc. in Texas.
With no public announcement made, Charter Healthcare’s Chapter 7 bankruptcy filing has led to uncertainties regarding the company’s future and the impact on its patients, employees, and creditors. The legal proceedings and asset distribution in this case will provide further insights into the circumstances surrounding the company’s financial challenges and decisions. While Charter’s operations have halted following the filings, the implications of its bankruptcy on the broader hospice and home healthcare industry remain to be seen in terms of regulatory scrutiny and market dynamics.
