Miami-based CareMax, a healthcare provider focused on older adults, filed a Dec. 2 WARN notice for 530 employees after it sought Chapter 11 protection Nov. 17.
Along with the bankruptcy filing, CareMax also entered into an agreement with Revere Medical to sell its core clinic business assets and management services organization.
Under the agreement, CareMax will sell the Medicare shared savings program part of its MSO business to Revere Health, formerly known as Dallas-based Steward Health Care's physician group, Stewardship Health, before it was bought by Nashville, Tenn.-based Rural Healthcare Group, a primary care provider organization part of Kinderhook Industries.
CareMax plans to close the sale of both its MSO business and clinical care centers business Jan. 31. The purchaser will then determine which, if any, of CareMax's employees it intends to hire upon the transaction closing, according to the WARN notice.
"[A]lthough it is not certain at this point that WARN notice is required, [CareMax] is providing conditional WARN notice in case the purchaser's hiring decisions lead to a mass layoff or plant closure, as defined by the WARN Act," the notice said.
Some of the affected positions include CEO, COO, chief legal officer, vice president of human resources and talent acquisition, chief of staff, chief medical officer and president of CareMax MSO, chief administrative officer of MSO operations, ambulatory care manager, pharmacist, registered nurse and accounting manager.
Employees that will be offered employment by the MSO business purchaser will be told on or before Jan. 17 and employees that will receive employment offers from the core centers business purchaser will receive notification on or before Jan. 16 for "all employees except medical doctor employees," who will receive offer notices on or before Jan. 25.
All of the CareMax employees who do not receive employment offers by the purchaser will be terminated on or around Jan. 31.
Becker's has reached out to CareMax and Revere Medical for comment and will update this story should more information become available.