CareMax, a healthcare provider operating 56 medical centers across Florida, Texas, Tennessee, and New York, has filed for Chapter 11 bankruptcy protection in Texas. The company, which primarily serves elderly patients, is now facing significant financial challenges.
According to its filing with the U.S. Bankruptcy Court for the Northern District of Texas, CareMax reported liabilities exceeding $690 million and assets totaling $390 million. Earlier this year, the company posted a second-quarter loss of more than $170 million and issued a warning regarding its ability to continue as a going concern.
In addition, CareMax announced it would be unable to file its third-quarter report to the U.S. Securities and Exchange Commission due to insufficient funds, Reuters reported.
What’s Next for CareMax?
In its bankruptcy filing, CareMax revealed plans to pursue the sale of its management services and key assets related to its medical centers. Despite the financial difficulties, the company intends to keep its clinics running and continue paying wages to its staff, including doctors and nurses.
To assist with restructuring, CareMax has enlisted Alvarez & Marsal as financial advisers and Piper Sandler as an investment banker.
More Healthcare Providers Struggling
CareMax is not the only healthcare provider facing financial troubles. In May, Steward Health Care, based in Massachusetts, filed for bankruptcy with $9 billion in debt and plans to sell off its 31 hospitals. The company’s CEO, Ralph de la Torre, faced significant backlash for receiving over $100 million in compensation while employees complained about shortages of basic supplies. This prompted an investigation by the Senate Committee on Health, Education, Labor, and Pensions. In September, the committee approved a resolution for civil enforcement and criminal contempt charges against de la Torre after he defied a subpoena.