CareMax, a major healthcare provider operating 56 medical centers across Florida, Texas, Tennessee, and New York, filed for Chapter 11 bankruptcy protection in Texas on Sunday. The company, which primarily serves older patients, reported debts exceeding $690 million and assets of around $390 million in a filing with the U.S. Bankruptcy Court for the Northern District of Texas, as obtained by USA TODAY.
In its second-quarter results released in August, CareMax reported a loss of over $170 million and issued a going-concern warning. The company later announced it would be unable to file its third-quarter report to the U.S. Securities and Exchange Commission due to insufficient funds, according to Reuters.
In a statement on Sunday, CareMax outlined its plans to pursue a sale of its management services and core centers assets while continuing to operate its clinics and pay wages to its doctors and nurses. To navigate the bankruptcy process, CareMax has enlisted Alvarez & Marsal as financial advisers and Piper Sandler as an investment banker.
CareMax’s filing follows a growing trend of healthcare providers facing financial difficulties this year. In May, Steward Health Care, based in Massachusetts, filed for bankruptcy, seeking to sell all 31 of its hospitals and manage $9 billion in debt. The CEO of Steward, Ralph de la Torre, faced criticism for receiving over $100 million in compensation while employees at Steward hospitals reported shortages of basic supplies. In September, the Senate Committee on Health, Education, Labor, and Pensions approved a resolution to enforce a civil charge and criminal contempt charge against de la Torre after he defied a subpoena.
The bankruptcy filings highlight the mounting financial pressures facing healthcare providers in the U.S. this year.
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