Senior care provider CareMax may lay off 530 employees if deals to sell its management services organization and clinical care center businesses are completed.
Miami-based CareMax filed for Chapter 11 bankruptcy protection last month and announced it had entered an agreement with an affiliate of Revere Medical, a medical provider group, to sell its management services organization. Revere is backed by private equity company Kinderhook Industries, which purchased Steward Health Care's physician group in a $245 million deal in October. Separately, CareMax entered a stalking horse agreement late last month with ClareMedica Health Partners on the sale of its clinical centers. Both transactions require court approval.
Related: CareMax becomes latest health system to file for bankruptcy
The buyers will decide at the close of each transaction whether to keep any current CareMax employees, leading the company to file a Worker Adjustment and Retraining Notification notice, a spokesperson for CareMax said Monday. The sale of both businesses is expected to close by Jan. 31.
Roles that could be affected include the CEO and chief operating officer of CareMax's management services organization alongside several other leadership, clinical and administrative positions across both businesses, according to the WARN notice.
Employees offered jobs at CareMax's management services organization business would be notified on or before Jan. 17. Employees of the clinical care centers, excluding physicians, would be notified on or before Jan. 16. Physicians of the clinical care centers would be alerted on or before Jan. 25, according to the notice.
