LEWISVILLE, TEXAS — Adeptus Health Inc. (NYSE: ADPT), a Texas-based operator of freestanding emergency rooms in the United States, on Wednesday filed for Chapter 11 bankruptcy protection while it is preparing a restructuring plan.
While Adeptus’ wholly owned subsidiaries are included in the bankruptcy filing, the joint ventures it is involved in are not. All of the company’s owned and joint-venture freestanding emergency rooms will continue to operate as normal during the bankruptcy process, according to a prepared statement.
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In 2015, UCHealth acquired a majority stake in Adeptus Health’s freestanding emergency rooms throughout Northern Colorado, the Boulder Valley, Colorado Springs and the Denver Metro area. Its 14 Colorado locations were included in the partnership and were renamed UCHealth ER.
Adeptus said it is collaborating with New York City-based hedge fund Deerfield Management on the restructuring plan that is expected to reduce Adeptus’ outstanding debt. Through the restructuring process, Adeptus said it is expected that ownership of the company will transition to Deerfield Management.
Deerfield Management, which has been a long-term investor in Adeptus, has committed to providing Adeptus with $45 million in debtor-in-possession financing.
“Over the last several years, Adeptus has invested significantly to expand our facility footprint and respond to the growing demand for high-quality emergency medical care,” said Gregory W. Scott, chairman and interim chief executive of Adeptus. “While these investments have increased patient access, the associated expenditures have strained the company’s financial resources.”