The move comes as the company grapples with mounting financial challenges, including rising labor costs, declining Medicare reimbursements and liquidity constraints.
Landmark operates five LTAC hospitals in Athens, Ga.; Savannah, Ga.; Cape Girardeau, Mo.; Columbia, Mo.; and Joplin, Mo. It also manages a sixth facility in Lehigh Acres, Fla., but does not own it.
The company has struggled to maintain financial stability in the wake of the COVID-19 pandemic. Initially, the company saw an influx of patients due to the public health emergency, but that demand was offset by a significant increase in labor costs, including skilled nursing, staffing shortages and other inflationary expenses.
“At the same time, reimbursement rates for programs administered by the Centers for Medicare and Medicaid Services plateaued (and in some cases declined),failing to keep pace with the rise in healthcare-related costs,” the company said in court documents. “Additional restrictive regulatory changes were implemented when the declared public health emergency was lifted on May 23, 2024, further restricting the types of patients allowed in an LTAC hospital.”
These financial pressures left Landmark unable to generate sufficient cash flow to cover its debt obligations.
Landmark plans to file bidding procedures in the coming weeks to solicit potential buyers or capital partners. The company told stakeholders that it has enough cash on hand to keep its hospitals operational and will seek court approval to use its existing funds to cover essential expenses.
Throughout the process, Landmark said it remains committed to maintaining patient care, with about 625 employees, including physicians and contract workers, continuing their roles at the hospitals.
Landmark did not respond to Becker’s request for comment.