CareMax Inc. provides value-based care services through a proprietary, technology-enabled platform that uses data analytics to improve patient care and streamline physician workflow. The company also operates multispecialty, medical care centers across the country, primarily in Florida. 

On November 17, 2024, CareMax filed voluntary petitions for relief under Chapter 11. Under this plan, CareMax entered into several agreements to sell portions of its business, including the sale of its managed services organization (MSO) to Revere Medical, formerly known as Rural Health Group. CareMax’s MSO supports approximately 80,000 Medicare beneficiaries. Additionally, CareMax entered into a stalking horse agreement—a preliminary bid used in bankruptcy auctions to set a baseline price—to sell the company’s operating clinic business to ClareMedica Viking, LLC. 

Background 

In 2011, CareMax was founded to deliver high-quality medical services  to underserved patients in economically challenged areas through a network of physicians and healthcare professionals. The company quickly expanded its operations in 2012 by opening additional medical centers, including Senior Medical Associates in Weston, FL and NewLife Medical Center in Tamarac, FL. By 2015, the company announced the creation of CareOptimize, which provides technology and practice transformation services to simplify the switch to value-based care. Over time, CareOptimize gathered data and developed a rules engine for artificial intelligence and best practices that identifies care and efficiency opportunities. CareOptimize later launched a patient-facing application for members to engage in their own care. 

In 2021, CareMax went public through a $614 million, special-purpose acquisition company (SPAC), where Deerfield Healthcare Technology Acquisitions Corp. merged with CareMax Medical Group for $364 million and IMC Medical Group for $250 million, respectively. Following the merger, CareMax oversaw 26 medical centers and served roughly 52,000 members in the Florida area. To fuel continued expansion, CareMax partnered with Anthem in August 2021 to open 50 additional medical centers around the country.  

In November 2022, CareMax acquired Steward Health Care System’sMedicare value-based care business for $135 million (comprised of $25 million in cash and 23.5 million shares of Class A common stock, priced at $4.68 per share). Through the deal, CareMax became the exclusive value-based MSO across Steward’s Medicare network (171,000 senior patients and 1,800 providers across eight states). In addition, CareMax received exclusive access to Steward’s physician network.  

The deal was expected to contribute approximately $1.6–$1.7 billion and approximately $100–$115 million in adjusted EBITDA by 2025. The plan to achieve these projections included attributing CareOptimize to the Steward markets to improve care and reduce medical expenses.  

Founded in 2010, Steward, a Dallas-based integrated health system, was among the largest accountable care organizations (ACOs) in the nation, serving 12.3 million patients annually at the time of the CareMax transaction. Amid some extensive legal and financial challenges through late 2023, Steward filed for bankruptcy in May 2024.  

During this time, CareMax was also facing operational challenges from the COVID-19 pandemic, a constrained capital market, inflationary pressures, and looming reimbursement pressures due to the Centers for Medicare and Medicaid Services’ (CMS’) new V28 model. CareMax reported approximately $40 million in net operating losses in 2022, growing to approximately $683 million in losses in 2023. As a result, CareMax’s liquidity position was deteriorating, and the company faced imminent defaults under certain covenants in early 2024.  

CareMax began considering strategic alternatives to deleverage its balance sheet, including the sale of the MSO business in conjunction with Steward, who was engaged in a sale process for Steward’s physician network. Steward cancelled the joint sale agreement shortly thereafter, creating uncertainty for potential buyers of Caremax’s MSO business. On June 22, 2024, Steward filed a motion to cut ties with CareMax, posing a serious threat to CareMax’s MSO business. Later that year, CareMax and Steward came to a stipulation that preserved CareMax’s business for a potential sale.  

Around this time, CareMax also began a sales process for its operating clinic business. The most desirable bids for the operating clinic business were contingent on implementing the sale through a Chapter 11 court process.  

On September 20, 2024, CareMax was notified that the company no longer met the minimum requirements to participate in the Nasdaq. The company filed for Chapter 11 bankruptcy in November 2024.

Reorganization & Notable Asset Sales 

At the time of the bankruptcy filing, CareMax reported $693 million in debt and $390 million in assets. In February 2025, CareMax announced the successful implementation of their pre-arranged Chapter 11 plan. Under this plan, the company effectively discharged and extinguished all pre-existing equity interests, including any outstanding shares. Shareholders did not receive any distributions for their equity interests.  

CareMax sold the Medicare Shared Savings Program portion of its MSO business to Revere Medical for $10 million plus certain 2023 and 2024 Medicare Shared Savings Program Payments. Revere Medical previously closed the acquisition of Steward’s physician network in October 2024. Additionally, CareMax sold its operating clinic business to ClareMedica Viking, LLC for $35 million in cash and $65 million in units of ClareMedica Health Partners, LLC. CareMax also entered into agreements for the sale of its pharmacy and care optical operations.  

As a result of the confirmed Chapter 11 plan and asset sales, CareMax emerged from bankruptcy on February 3, 2025. CareMax’s remaining business is limited after these asset sales. The company plans to deregister its securities and has not disclosed any plans to rebuild or expand anew.  

References 

CareMax Inc. (n.d.). Press releases, public filings, and investor presentations. 

CareMax Inc. (n.d.). Public information related to CareMax’s Chapter 11 plan for reorganization. Retrieved from https://cases.stretto.com/caremax/ 

 CareMax Inc. (2024). Quarterly results. Retrieved from https://ir.caremax.com/financials/quarterly-results/default.aspx 

Sidley. (2025, February). Sidley secures confirmation of CareMax Chapter 11 plan. Retrieved from https://www.sidley.com/en/newslanding/newsannouncements/2025/02/sidley-secures-confirmation-of-caremax-chapter-11-plan 

Investing.com. (2025, February). CareMax finalizes bankruptcy plan and asset sales. Retrieved from https://www.investing.com/news/sec-filings/caremax-finalizes-bankruptcy-plan-and-asset-sales-93CH-3846547 

Ropes & Gray. (2025, February). CareMax completes restructuring and asset disposition. Retrieved from https://www.ropesgray.com/en/news-and-events/news/2025/02/caremax-completes-restructuring-and-asset-dispos