An oncology practice in another state recently decided to file for bankruptcy. The Chapter 11 bankruptcy filing comes following many years of a decline in revenue along with lawsuits. Companies in Massachusetts that are facing financial challenges due to a poor economy and/or legal issues may benefit from filing for bankruptcy, depending on their particular circumstances.
The oncology business in the recent out-of-state case stated that it was facing not only revenue decreases but also two recent settlements valued at several million dollars each. These two settlements were associated with allegations of billing fraud. The company was also facing several other ongoing lawsuits.
As part of its Chapter 11 bankruptcy filing, the oncology business said it has created a restructuring plan that will decrease its debt by a total of $500 million. This is about 50 percent of the business’s long-term obligations. In addition, the company’s interim CEO said he did not expect the bankruptcy process to disrupt the business’ current treatment schedules, clinics or appointments. The business currently provides cancer-related treatments, such as radiation treatment and pathology services, at almost 180 locations all across the United States. The company said it did not have immediate plans related to laying off employees.
With a Chapter 11 bankruptcy, a business can essentially reorganize its debts and partially pay back its unsecured debts. The benefit of such a filing is that the business can keep operating as it pays off its debts. An attorney in Massachusetts can help a business to navigate the multi-step process of filing for bankruptcy.
Source: usatoday.com, “21st Century Oncology files for Chapter 11 bankruptcy protection“, Frank Gluck, May 26, 2017