Recently, 21st Century Oncology, which is based out of Fort Myers, filed for Chapter 11 bankruptcy reorganization. This action creates uncertainty about the future of over 100 cancer treatment clinics that are located here in Florida.
The Chapter 11 petition was filed in the Southern District of New York. Recent years have seen a steady decline in revenue, coupled with unsettled litigation related to the company's billing practices.
Last November, 21st Century Oncology stated it failed to make good on a scheduled $20 million payment on its debt.
According to its interim CEO, the company is planning a debt restructuring. He stated that day-to-day operations at the clinics shouldn't be impacted.
"This is a positive development for 21st Century Oncology and our employees, health care partners and patients who depend on our critical medical services," he said.
He defended the profitability of the businesses, yet admitted the company took on too much debt, citing "unprecedented, ongoing challenges" wrought by changes across the board in the industry. Those caused the company to initiate debt reduction discussions with creditors, which ultimately led to the filing.
The website for 21st Century Oncology lists 179 treatment centers in operation. Of that total, 143 are here in 17 different states in America. Others are located in Latin America. Approximately 4,000 employees work at all locations.
Companies in similar circumstances may benefit from taking the same type of restructuring actions as the aforementioned one did. It is always good to understand all of the legal options that are available in cases of debt restructuring and bankruptcy.
Source: South Florida Business Journal, "Cancer care company’s Chapter 11 filing involves dozens of South Florida locations," Brian Bandell, May 30, 2017