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The proprietor of a prominent hospital network that manages specialized medical facilities across the Midwest and South regions has declaredChapter 11 bankruptcy.
Landmark Holdings of Florida LLC manages six Landmark Hospitals across Florida, Missouri, and Georgia.
The firm declared bankruptcy in Florida on March 9, citing debts between $50 million and $100 million.
This marks the most recent significant hospital chain operator to declare bankruptcy this year.
Prospect Medical Holdings, a major player in the healthcare industry with oversight of 16 hospitals and more than 150 clinics spanning four states.
filed for bankruptcy in Texas back in January
.
At that point, the firm mentioned its intention to sell off multiple hospitals. Presently, authorities in Pennsylvania are battling to maintain the operation of facilities within the state.
It remains unclear whether Landmark intends to shut down any hospitals as part of its bankruptcy process, or if the facilities will keep operating as usual.
As stated in the bankruptcy documents, the biggest unsecured creditor of the firm is Ventas, a real estate investment trust focusing on healthcare properties, to whom the company owes $13 million.
According to Landmark’s filing, all funds will be allocated towards covering administrative costs, leaving nothing for distribution among unsecured creditors.
The Street
.
The chain operated by CEO Bryan Day includes specialty hospitals such as the Landmark Hospital of Joplin, Missouri, which is an acute long-term care facility.
In Missouri, it also operates the Landmark Rehabilitation Hospital of Columbia, offering rehabilitation and long-term care for patients with complex medical conditions, as well as the Landmark Hospital of Cape Girardeau.
This facility likewise offers long-term intensive care for those who need prolonged recovery times.
In Georgia, Landmark similarly operates such facilities in Athens and Savannah.
It also manages Landmark Hospital of the Southwest in Lehigh Acres, Florida.
As stated in the bankruptcy documents, the firm possesses between $10 million and $50 million worth of assets.
In addition to Ventas, the firm’s biggest unsecured creditors comprise the Center for Medicare & Medicaid Services, which is due more than $6.4 million, and J&R Fuller LLC, a hospital pharmacy management business, with an outstanding amount exceeding $3.2 million.
Issues arose at Landmark following Prospect Medical Holdings’ bankruptcy filing in January, and just under a year since then.
bankruptcy of Steward Healthcare
a leading healthcare network supported by investment funds.
Steward, which controlled over 30 hospitals spanning eight states, was
reported by CBS
having lost hundreds of millions of dollars to private equity firms, which could have led to deficits in crucial medical supplies.
Prospect Medical, which ran healthcare facilities nationwide,
California
,
Connecticut
,
Pennsylvania
and
Rhode Island
, was previously an avid purchaser of financially troubled hospitals.
In addition to Steward, Prospect Medical has also come under scrutiny from CBS for inquiries into how private equity firms have siphoned off substantial sums from local hospitals.
Both Prospect Medical and Steward relied on the value of their hospital real estate to help pay for large payouts for their owners.
The
Steward bankruptcy drew government scrutiny
This sparked discussions regarding the oversight of privately-owned hospitals under private equity management, where their collapse might have severe repercussions for nearby populations.
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