CareMax, a major healthcare provider operating 56 medical centers in Florida, Texas, Tennessee, and New York, has filed for Chapter 11 bankruptcy in Texas. The company primarily serves older adults, and is now facing significant financial difficulties.

The Miami-based company reported debts exceeding $690 million and assets totaling $390 million, according to a filing with the U.S. Bankruptcy Court for the Northern District of Texas. This filing follows a series of financial challenges, including a loss of over $170 million reported in August for the second quarter, as well as a warning about its financial viability moving forward.

CareMax also indicated it would be unable to file its third-quarter report with the U.S. Securities and Exchange Commission, citing a lack of funds, as reported by Reuters.

What Happens Next for CareMax?

In its bankruptcy filing, CareMax revealed plans to sell both its management services and core center assets. The company has also expressed its intention to continue operating its clinics as usual, including paying wages to its doctors and nurses.

To aid in its restructuring, CareMax has hired Alvarez & Marsal as financial advisers and Piper Sandler as an investment banking partner.

Other Healthcare Providers in Financial Distress

CareMax isn’t the only healthcare provider facing bankruptcy this year. In May, Steward Health Care, based in Massachusetts, filed for bankruptcy, with plans to sell its 31 hospitals and address $9 billion in debt. Steward’s CEO, Ralph de la Torre, came under fire after receiving over $100 million in compensation while employees reported severe shortages of medical supplies. As a result, the Senate Committee on Health, Education, Labor, and Pensions launched investigations. In September, the committee approved a resolution to pursue civil enforcement and a criminal contempt charge against de la Torre after he refused to comply with a subpoena.