The Pharos Capital-backed home health provider Charter Healthcare recently filed for bankruptcy.
A petition for Chapter 7 bankruptcy was filed in the Federal District Court of Delaware in late January, Home Health Care News’ sister site Hospice News first uncovered. Filings were found in eight different states, spanning the Rancho Cucamonga, California-based Charter’s former footprint.
While Charter’s website is now defunct, its landing page on Pharos’ investment page is still available. The private equity company first invested in Charter in 2018.
“Charter Health Care Group, founded in 2006, is an integrated post-acute care provider offering hospice, home health, and transitional care services,” the description reads. “The company serves over 3,600 patients and has multiple locations across Arizona, California, Colorado, Nevada, and Utah. Charter is a trusted partner for hospital systems, managed care organizations, assisted living facilities, skilled nursing facilities, medical groups, and surrounding communities.”
That description is likely outdated, as Charter had expanded to more states and was likely caring for close to 13,000 patients at its peak.
Cheryl Lovell had taken over as CEO of the company in February of 2023. She told Home Health Care News her goals for the company included the formation of more strategic relationships with accountable care organizations (ACOs), health systems and payers, as well as bolstered recruiting and retention efforts.
“We have a big presence in California, and we’re working with the payers on per-patient, per-month modeling to see how we can more effectively reduce hospitalizations, and manage [care] from a bigger-picture approach,” Lovell at HHCN’s FUTURE conference last year. “That includes home health, palliative and hospice together. And so they’re more amenable to some of those blended, at-risk models. That doesn’t seem to be the case with all managed Medicare [payers]. But we have found some success.”
According to Lovell’s LinkedIn, she is now the COO of another home-based care company, Constellation Health Services.
After Pharos backed Charter, the company was a prolific acquirer, but transactions slowed in the middle of 2021.
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