CareMax, a Miami-based healthcare company, has operated 46 clinical centers in the United States, employing approximately 1,100 people and serving 260,000 patients. However, on November 17, 2024, the company filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Texas.

The company reported assets valued at $390 million and debts amounting to $639 million. Among its main unsecured creditors are Health Catalyst Inc., Elevance Health Inc., and Foresee Medical Inc.

CareMax attributes its financial situation to systemic and internal challenges that drastically increased operating costs, outpacing revenue growth. Factors such as inflation, which raised labor and operational costs, the lingering effects of the COVID-19 pandemic, insufficient reimbursement rates in the industry, and rising interest rates that increased debt servicing costs contributed to this situation.

The company has agreed to sell its Medicare Shared Savings Program, managed by its Management Services Organization, to Revere Medical. Additionally, it plans to appoint an initial bidder for the sale of its operating clinics. CareMax has also sought court approval to obtain $122 million in debtor-in-possession financing, consisting of $30.5 million in new cash and the restructuring of existing debt.

This bankruptcy filing adds to a series of recent financial crises in the healthcare sector, affected by rising costs and economic pressures following the pandemic. CareMax's situation reflects the challenges faced by healthcare organizations in the current economic environment