Skilled Nursing Provider LaVie Care Centers Seeks Bankruptcy Protection
In other health industry news, Cigna's Evernorth Care Group will lay off 261 employees in Arizona, and a Pennsylvania hospital chain is planning a debt swap to try to turn around its ailing fortunes.
Modern Healthcare:
LaVie Care Centers Files For Bankruptcy
LaVie Care Centers, which operates 43 skilled nursing facilities across five states, filed for Chapter 11 bankruptcy protection Sunday. The Atlanta-based company listed between $500 million and $1 billion in assets and between $1 billion and $10 billion in liabilities in its filing made in the U.S. Bankruptcy Court in the Northern District of Georgia. (Eastabrook, 6/3)
Modern Healthcare:
Cigna’s Evernorth Care Group Layoffs Hit 261
Cigna’s Evernorth Care Group will lay off 261 employees in Arizona, part of a plan to cut some specialty care services and focus on integrated primary care. Evernorth also will close multiple locations as it evolves to meet patient needs, a Cigna spokesperson said. The company notified the state Friday of the pending layoffs. (Berryman, 6/3)
Bloomberg:
Troubled Pennsylvania Hospital Chain Preps $1 Billion Debt Swap
Struggling Pennsylvania hospital chain Tower Health plans to exchange current debt and raise additional funds as it pursues a turnaround. The system, trustee and bondholders of about $992 million in debt are supporting an exchange of “substantially all” existing bonds, according to a May 31 agreement that Tower Health disclosed in a filing Monday. The system also plans on selling $142.5 million of new municipal bonds for working capital. The finalized agreement will close in August, according to a spokesperson for Tower Health. (Coleman-Lochner, 6/3)
The Boston Globe:
Steward Health Care Ups Offer To Lenders As It Runs Low On Cash
With cash-depleted Steward Health Care set to run out of money by June 14, a bankruptcy judge Monday granted it permission to offer financial sweeteners to a new lender that would fund Steward’s operations while it prepares to sell its hospitals and doctors group. Steward, which filed for bankruptcy on May 6, is scrambling to line up at least $225 million in new financing by early next week after its initial bankruptcy lender, Medical Properties Trust, said it wasn’t prepared to provide more than the $75 million it ponied up last month. (Weisman, 6/3)
Modern Healthcare:
UPMC, Washington Health System Merge
The University of Pittsburgh Medical Center acquired Pennsylvania's Washington Health System on Saturday. The nonprofit health systems signed a definitive agreement to merge in October, after first announcing plans in June 2023. UPMC has committed to invest at least $300 million over the next decade into Washington's two hospitals, now UPMC Washington and UPMC Greene, to upgrade facilities and support clinical services, according to a Saturday news release. (Hudson, 6/3)
Bloomberg:
Ardent Health To Seek $400 Million Or More In Second Try At IPO
Ardent Health is planning an initial public offering for a second time and could seek to raise $400 million or more, according to people familiar with the matter. The hospital operator confidentially submitted its IPO registration to the US Securities and Exchange Commission for an IPO that would value Ardent at about $5 billion and perhaps more, the people said, asking not to be identified because the information is private. (Tan and Or, 6/3)
