LifeMasters Supported SelfCare, an Irvine, Calif.-based disease-management company, filed for Chapter 11 bankruptcy protection and named turnaround consultant George Pillari as president and CEO. Pillari, a managing director with Alvarez & Marsal Healthcare Industry Group, succeeds Christobel Selecky, who will remain on the privately held company's board and be hired as a consultant, he said.
Pillari, who declined to release LifeMaster's annual revenue or income, said the company's operations are expected to be profitable but it could not pay $100 million owed to the CMS after three disease-management demonstration projects.
“It's too big of a burden,” he said. LifeMasters, one of nine companies in the demonstration projects, was not the only participant that the CMS has said failed to show success and must pay back any profits earned beyond the pilot projects' savings, according to the company.
According to the bankruptcy filing, the company has assets between $10 million and $50 million. The company's Web site lists Intel Corp., Seimens and Pacific Life Insurance Co., among more than a dozen investors.