CareMax, a prominent healthcare provider operating 56 medical centers across Florida, Texas, Tennessee, and New York, has filed for Chapter 11 bankruptcy in Texas. The company, which focuses on providing services to older adults, has struggled financially in recent months.
The Miami-based company reported debts of over $690 million and assets of $390 million in its bankruptcy filing with the U.S. Bankruptcy Court for the Northern District of Texas. In August, CareMax posted a second-quarter loss of more than $170 million and issued a going-concern warning about its future financial stability.
CareMax also informed the U.S. Securities and Exchange Commission (SEC) that it would be unable to file its third-quarter report, citing insufficient funds, according to a Reuters report.
What Comes Next for CareMax?
In its bankruptcy filing, CareMax outlined plans to sell both its management services and its core center assets. The company also stated that it intends to continue operating its clinics and continue paying wages to its staff, including doctors and nurses.
To assist in the restructuring process, CareMax has hired Alvarez & Marsal as financial advisers and Piper Sandler as its investment banker.
Other Healthcare Providers Facing Bankruptcy
CareMax is not alone in facing financial distress. In May, Steward Health Care, based in Massachusetts, filed for bankruptcy while attempting to sell its 31 hospitals and address $9 billion in debt. Steward’s CEO, Ralph de la Torre, faced criticism for receiving over $100 million in compensation while employees reported a lack of basic medical supplies. This led to an investigation by the Senate Committee on Health, Education, Labor, and Pensions. In September, the committee approved a resolution seeking civil enforcement and criminal contempt charges after de la Torre failed to comply with a subpoena.