Lake Oswego, Ore.-based Aequitas Capital Management is close to selling its subsidiary, Lake Oswego, Ore.-based CarePayment, according to the Portland Business Journal.
CarePayment CEO Craig Hodges told the Portland Business Journal Aequitas is in negotiations to sell its majority interest in CarePayment. He did not name the potential buyer, according to the report.
CarePayment uses investor money to buy uncollected hospital bills. The company has purchased more than $500 million in unpaid bills and had enrolled nearly 750,000 patients, according to the report.
News of the sale comes as the company transitions its corporate headquarters from Lake Oswego to Nashville, Tenn.
According to CarePayment officials, the sale will also be used to refund investors. The Securities and Exchange Commission sued Aequitas and three executives earlier this year. According to the report, the co-conspirators defrauded 1,500 investors through a $350 million "Ponzi-like" scheme while hiding the firm's worsening financials.
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