A health system, drugstore chain and value-based primary care provider have recently emerged from Chapter 11 bankruptcy:
1. Gardner, Mass.-based Heywood Healthcare exited Chapter 11 bankruptcy on Sept. 30 after addressing contract issues, seeking commercial rate improvements and organizing finances.
Heywood spent the last year restoring financial stability as an independent community-owned and community-governed organization. The system restructured its debt and out-of-market contracts while growing and maintaining regional services including behavioral and obstetric care.
2. Drugstore chain Rite Aid emerged from Chapter 11 bankruptcy Sept. 3 after completing a financial restructuring.
Philadelphia-based Rite Aid filed for bankruptcy in October 2023. The company cut around $2 billion in debt and received around $2.5 billion in exit financing. It is now operating as a private company and named CFO Matt Schroeder its new CEO.
3. Value-based primary care provider Cano Health emerged from Chapter 11 on June 28 as a reorganized private company focused on providing quality care in the Florida market.
The Miami-based company filed for bankruptcy in February. Cano reorganized its assets, including by exiting underperforming expansion markets and pruning its medical center portfolio to focus on specific Florida markets. The company said it achieved over $270 million in cost reductions and productivity improvements and is performing favorably against its $290 million cost-cutting goal for 2024.