Lewisville-based freestanding emergency room chain Adeptus Health has been acquired by New York hedge fund Deerfield Management and is emerging from bankruptcy.
The companies announced the news in statements issued Monday.
Adeptus, the nation’s largest operator of the standalone emergency facilities, filed for bankruptcy this spring after a string of earnings losses. The company took out a $7.5 million short-term loan in March, and in April, Deerfield acquired about $212 million of its debt.
Adeptus said last week that a Texas judge had accepted its financial restructuring plan. Effective Monday, the company is now owned by affiliates of Deerfield and is free of all long-term debt.
Frank Williams, who had served as the chief financial officer, is now the CEO, and Gregory Scott, formerly the chairman and interim CEO, is now executive chairman.
The reorganized entity of 99 freestanding emergency rooms across seven U.S. markets is no longer publicly traded. The ADPT symbol on the New York Stock Exchange is deleted.
Deerfield said that it plans to expand value and go “beyond capital to seek an evolved health care service paradigm that better aligns with patient and industry needs,” including further integration with hospital networks to increase accessibility.
Founded in 2002, Adeptus quickly became an expansive enterprise when it went public in 2014. But the company suffered from low patient volumes and billing and collection issues, its high costs alarmed consumers, and researchers criticized the location choices of the for-profit model.
For example, a study released Monday in the health policy journal Health Affairs is the latest to look at the proliferation of freestanding facilities, which outnumber hospitals in Texas and are often run as businesses by physician-entrepreneurs.
Like previous studies, it found that the satellite facilities tend to cluster around major metro areas, like Houston, Dallas and Austin, which already have…