Medical supply company files for bankruptcy, plans to close

American Medical Depot, a medical products supplier based in Miramar, Fla., filed for Chapter 11 bankruptcy protection Dec. 11, according to the South Florida Business Journal

Paul Singerman, who represents the company in bankruptcy court, said American Medical Depot is a "Covid victim." He said the company will liquidate its remaining assets and cease operations, according to the report. 

American Medical Depot posted revenue of $39.1 million in 2019, but a cancelled contract put the company on shaky financial footing. 

In 2016, American Medical Depot entered into a contract with the Veterans Health Administration to provide supplies to 70 government hospitals on the East Coast. The Veterans Health Administration terminated the contract, which made up 85 percent of American Medical Depot's sales, as of Aug. 1, according to the report.

The company had 173 employees in August but has since laid off all but 33 workers. 

More articles on supply chain:
Rural California hospitals struggle with state's new PPE stockpile mandate
Rare disease patients struggle to find PPE
FDA authorizes first fully at-home COVID-19 test

© Copyright ASC COMMUNICATIONS 2021. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.