Adeptus embarks on bankruptcy comeback, reaps $45M from hedge fund partnership
- Adeptus Health will receive financial assistance from investment management firm Deerfield Management to remain in operation while it goes through bankruptcy, the freestanding ER company announced.
- The hedge fund has committed to providing $45 million in debtor-in-possession financing. It acquired $212.7 million in debt from the company, which has $8 billion in assets, earlier this month.
- The company's facilities are "open and are continuing to serve patients with the same high-quality care and medical attention for which they are known," according to the announcement.
The healthcare industry has been changing at a rapid pace over the past few years and the President Donald Trump administration has indicated that more major changes will come in the near future. This has led to numerous consequences for companies that have attempted to expand access to meet an increased demand for quality care services.
"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," Adeptus Interim CEO Gregory W. Scott said in a statement. "While these investments have increased patient access, the associated expenditures have strained the company's financial resources." Adeptus is waiting on a court authorization to continue making uninterrupted payments to its employees and providing their benefits. It is expecting the court to approve its motions.
Research has shown that the number of ER visits has decreased in the several states that have expanded their Medicaid program thanks to the Affordable Care Act (ACA). While the provisions in the ACA that require physicians to provide free preventive services may lead to cost savings at hospitals given that ER visits are typically more expensive for them, an ER company gets the short end of the stick.
Still, there are at least two reasons for an uptick in the demand for care services: Many physicians will soon leave the industry and the country's aging population. Numerous physicians across the U.S. reporting they will retire early is among the main factors that will contribute to a physician shortage of up to 104,900 professionals by 2030.
"For all specialty categories, physician-retirement decisions are projected to have the greatest impact on supply, and more than one-third of all currently active physicians will be 65 or older within the next decade," a report from the Association of American Medical Colleges released last month states.
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