CareMax becomes latest health system to file for bankruptcy

CareMax Inc., which runs a system of medical centers catered toward elderly patients, has filed for bankruptcy. 

Miami-based CareMax filed Chapter 11 in Texas on Sunday, listing assets of between $100 million and $500 million, and liabilities between $500 million and $1 billion. CareMax sought court protection after cost cuts and attempts to refinance its debt. 

The publicly traded company also announced Sunday it had entered into an an agreement with an affiliate of Revere Medical to sell its management services organization that supports care provided to approximately 80,000 Medicare beneficiaries. 

The bankruptcy follows other private health system companies including Steward Health Care, which sought court protection in Texas, and Petersen Health Care Inc., a senior living and skilled nursing company, which filed for Chapter 11 in March.

CareMax said it reached an agreement in principle with a third-party buyer for its operating clinic business. “The company intends to disclose the proposed terms of the stalking horse agreement and the potential purchaser in the coming days, when and if an agreement is finalized,” it said in a press release.

The company said it has also filed motions with the court to maintain business-as-usual, including patient care at its clinics, paying wages without interruption and paying the existing pre-petition claims of certain vendors.

The company had previously warned in securities filings that it would attempt to restructure in Chapter 11 if it was unable to get enough relief from creditors and landlords.

CareMax, which has attracted the attention of short sellers, has seen the price of its stock tumble to as low as $1.39 from a high of more than $500 three years ago. The company reported a net loss of $170.6 million for the second quarter of 2024. 

Its clinics are primarily located in Florida, but the healthcare provider also has locations in Tennessee and New York, according to its website. 

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