Adeptus Health files for bankruptcy
Lewisville, Texas-based Adeptus Health, the largest operator of freestanding emergency rooms in the U.S, filed for Chapter 11 bankruptcy protection April 19.
While Adeptus' wholly owned subsidiaries are included in the bankruptcy filing, the joint ventures it is involved in are not. All of the company's owned and joint-venture freestanding ERs will continue to operate as normal during the bankruptcy process.
"Over the last several years, Adeptus has invested significantly to expand our facility footprint and respond to the growing demand for high-quality emergency medical care," said Gregory W. Scott, chairman and interim CEO of Adeptus. "While these investments have increased patient access, the associated expenditures have strained the company's financial resources."
Adeptus said it is collaborating with New York City-based hedge fund Deerfield Management on a restructuring plan, which is expected to significantly reduce Adeptus' outstanding debt. Through the restructuring process, Adeptus said it is expected that ownership of the company will transition to Deerfield Management.
Deerfield Management, which has been a long-term investor in Adeptus, has committed to providing Adeptus with $45 million in debtor-in-possession financing.
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