Clinical Care Medical Centers, owned by Sun Capital Partners, has filed for Chapter 11 bankruptcy in Miami. The company is seeking to sell its business to Conviva Care Centers, an affiliate of Humana Inc., for $45 million.
The bankruptcy filing is a result of financial challenges caused by changes in Medicaid and Medicare policies, as well as increased costs due to the Covid-19 pandemic.
MBMG Holding LLC, the operator of Clinical Care Medical Centers, currently has $480 million in long-term debt. The acquisition of the business by Sun Capital in December 2020 further complicated the financial situation.
The company operates 26 primary care facilities in Florida and serves approximately 35,000 patients.
The sale to Conviva Care Centers is subject to bankruptcy court approval and regulatory approvals. The transaction is expected to close within the next 60 days.