CareMax, a major healthcare provider with 56 medical centers in Florida, Texas, Tennessee and New York, filed for Chapter 11 bankruptcy protection in Texas on Sunday.
The company operates centers primarily for elderly patients.
The Miami-based company lists more than $690 million in debt and more than $390 million in assets, according to a filing with the U.S. Bankruptcy Court for the Northern District of Texas obtained Wednesday by USA TODAY. .
In August, the company announced second-quarter results that included losses of more than $170 million and issued a going concern warning.
According to Reuters, CareMax said it does not expect to be able to submit its third quarter report to the U.S. Securities and Exchange Commission due to a lack of funding.
Here's what you need to know:
What's next for CareMax?
CareMax said in a press release Sunday that it plans to sell both its managed services and core center assets. The company also said it is seeking continued normal operations at the clinic and payment of wages to doctors and nurses.
CareMax also hired Alvarez & Marsal as financial advisors and Piper Sandler as investment banker, according to the bankruptcy announcement.
Other health care providers are also on the brink of bankruptcy this year.
In May, Massachusetts-based Steward Healthcare filed for bankruptcy, seeking to sell all 31 hospitals and $9 billion in debt.
CEO Ralph de la Torre has paid more than $100 million to Steward Hospital as employees complain of a lack of basic supplies, according to the Senate Health, Education, Labor and Pensions Committee. He faced criticism for collecting compensation for his loss and purchasing a $40 million yacht.
In September, the commission approved a resolution seeking civil enforcement and criminal contempt after Mr. Delatorre resisted a subpoena earlier that month.
Contributor: Ken Alltucker, USA TODAY.
Fernando Cervantes Jr. is a trending news reporter for USA TODAY. Contact us at fernando.cervantes@gannett.com and follow us at X @fern_cerv_.
