Sep 01, · By Amy Baxter | September 1, After a tumultuous summer that led to more than 1, employee layoffs, Univita Health has filed for bankruptcy. The Florida-based home care product provider filed under Chapter 7 of the federal bankruptcy code, seeking to liquidate its assets, which, with liabilities, were estimated between $50 million and $ million, the Sun Sentinel reported Tuesday. Jul 31, · Univita is rumored to be planning to file for bankruptcy but hadn’t at press time, and is said to have laid off most of its approximately 1, employees in Florida. The private-equity backed Univita formed in and entered the HME market in , when it acquired Davie-based Atenda Healthcare Solutions. Sep 03, · Miramar-based Univita Homecare Solutions LLC and 11 of the company’s subsidiaries filed for Chapter 7 bankruptcy on Aug. 28, capping off a Author: Nina Lincoff.
Amid the birth preparations, Olivier said he had to start looking for new work. In a July 27 letter sent to Miramar employees, Chief Financial Officer Jack Greenman said the company didn't have enough cash to keep operating. Univita couldn't find "additional funding necessary to stabilize cash flows," Greenman wrote. The company's board of directors decided it was in the best interest of Univita — as well as its subsidiaries, creditors and employees — to go out of business and liquidate the remaining assets, according to court filings.
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Some employees claim they were not give adequate advance notice of the layoffs. Laid-off employees are seeking 60 days of pay and benefits under the Worker Adjustment and Retraining Notification Act, filed court documents reveal. Omar M. Olivier, a former Univita employee who was laid off in July, is the lead plaintiff on the lawsuit. The bankruptcy filing will likely delay any distribution to creditors and employees. More than 1, pages of court documents were filed in Delaware, the Sun Sentinel reported.
Raiser said it could take up to a year for a court-appointed trustee to get through the documents to determine how much money would be available for a possible distribution to employees and creditors. Of the 14 managed care organizations running the program, 10 contracted with Univita to administer DME. The state forged head, despite concerns from providers that the move would create a monopoly and would create a conflict of interest.
In its announcement July 28, AHCA said that Univita was no longer processing prior authorizations and directed providers to contact one of the other health plans. By , the company had 5 million patients across several states, including Tennessee, California, Minnesota, Indiana, Wisconsin and Massachusetts.
I read with much interest the Univita article. This comes as no surprise and has been rumored for some time. This should also be a lesson for Medicare, although I'm sure it won't be.
You can cut reimbursement only so far before the business becomes unsustainable.