North Texas ER Chain Revived from Bankruptcy Taken over by Hedge Fund

Adeptus Health, a Lewisville-based detached emergency room chain is emerging from bankruptcy and has recently been acquired by New York hedge fund Deerfield Management.

In a statement issued Monday, the company announced the news.

After a string of loss earnings, Adeptus, one of the nation’s largest operator of single emergency facilities, filed for bankruptcy in Spring. In March, the company took out a $7.5 million short term loan and when Deerfield acquired them in April, they also acquired about $212 million of its debt.

The financial restructuring plan has been accepted last week according to Adeptus by a Texas judge. The company is now free of all past debt and is now owned by affiliates of Deerfield.

The CEO, Frank Williams, also served as the chief financial officer, and the executive chairman, Gregory Scott, was the former the chairman and interim CEO.

The New York Stock Exchange deleted the ADPT symbol. The 99 stand-alone emergency rooms across seven U.S. industries is no longer publicly traded after being reorganized.

Deerfield states part of their strategy is to increase value and go “beyond capital to seek an evolved health care service paradigm that better aligns with patient and industry needs,” as well as additional networking with hospital organizations to increase accessibility.

Adeptus, was founded in 2002, and after going public in 2014 is quickly grew to an expansive enterprise. Researchers criticized the sites of the for-profit model, consumers were concerned about the high costs, and the company suffered from low patient volumes and billing and collection issues.

The health policy journal Health Affairs, for instance, released a story looking at the production of these stand-alone facilities, they are frequently run as businesses by physician-entrepreneurs and actually outnumber the amount of hospitals in the state of Texas.

Similar studies found that these stand-alone facilities where usually around major metro areas such as Houston, Dallas, and Austin, which consequently already have plenty of accessible emergency departments through hospitals.

Although the business model is “financially favorable” for the entrepreneurs, the study’s writers are concerned it does not benefit areas where access to care remains inadequate and where wait times are high to see physicians.

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