CareMax Files for Chapter 11 Bankruptcy

CareMax, Inc., a Miami-based healthcare provider primarily serving seniors, has filed for Chapter 11 bankruptcy in Texas, listing assets of $390 million against debts of $693 million. The company secured $30.5 million in debtor-in-possession financing to maintain operations while restructuring and plans to sell its management services organization and core assets. Factors contributing to its financial distress include high labor costs, delayed reimbursements, and the bankruptcy of Steward Health Care, from which CareMax acquired a Medicare business in 2022. In August, CareMax reported a significant second-quarter loss of $170.6 million and warned it could not file its third-quarter report due to funding issues. The company has hired Alvarez & Marsal as financial advisers and Piper Sandler as an investment banker to assist during the process. Revere Medical, backed by Kinderhook, is set to acquire parts of CareMax's assets, pending court approval, with a deal expected to close in early 2025.