CareMax Files for Chapter 11 Bankruptcy Amid $693 Million Debt
CareMax Inc. (CMAX.O), a healthcare provider operating 56 centers across Florida, Texas, Tennessee, and New York, filed for Chapter 11 bankruptcy in Texas on Sunday. The Miami-based company, which primarily serves older adults, reported $693 million in debt and $390 million in assets in its filing with the U.S. Bankruptcy Court for the Northern District of Texas.
Mounting Losses and Operational Challenges
CareMax’s financial troubles intensified following a second-quarter loss of $170.6 million reported in August. The company also issued a going-concern warning at that time. Earlier this month, CareMax disclosed it lacked the resources to submit its third-quarter financial report to the U.S. Securities and Exchange Commission (SEC), further signaling its precarious financial position.
Plans for Restructuring
The company intends to explore potential sales or other strategic transactions involving its management services organization and core healthcare centers. To guide this process, CareMax has retained Alvarez & Marsal as financial advisers and Piper Sandler as its investment banker, according to the court documents.
Connection to Steward Health Care
This development follows a series of healthcare bankruptcies, including Steward Health Care, which filed for bankruptcy in May to address $9 billion in debt. CareMax had acquired Steward’s Medicare value-based business in 2022, paying $25 million in cash and issuing 23.5 million shares of its stock.
The bankruptcy highlights ongoing financial pressures within the healthcare sector as organizations struggle to adapt to rising costs and operational demands.