In what looks like a case study in the need to diversify, Univita Health Inc. filed for Bankruptcy in the District of Delaware on August 28, 2015 – It is being administered as Case No. 15-11788. Pursuant to the Bankruptcy Petition it filed, Univita has also filed for bankruptcy under chapter 7 for 11 affiliates.
Although no official explanation for the bankruptcy filing appears on the docket, a quick Google search leads me to believe that Univita was the sole authorizer of home services for most Medicaid plan members in Florida. Univita broadened its business to compete in the home health-care sector, and may have stepped on some toes in the process. Regardless of whether it was forced into bankruptcy because of low payment rates from Medicaid or the termination of its contract by the Florida Agency for Health Care Administration (the “AHCA”), it appears likely that a single aspect of its business caused its ultimate failure. The AHCA now lists Univita as “CLOSED”. The listing is on AHCA’s Website here.
While explanations are not readily apparent on the docket, they will likely be provided at the 341 Meeting of Creditors, which is currently scheduled for 9/25/2015 at 11:00 AM at the J. Caleb Boggs Federal Building, 844 King St., Room 2112, Wilmington, DE 19801.
As this is a Chapter 7 liquidation, topics that are discussed during a Section 341 meeting may include the following:
- The nature and scope of a debtor’s assets and liabilities;
- The amount of accounts receivable and accounts payable;
- The extent that the debtor is able to repay its creditors;
- Whether insurance remains active; and
- The condition and location of goods received in the 20-45 days before bankruptcy.
The Debtor is represented by Young Conaway Stargatt & Taylor and Latham & Watkins LLP. The Docket currently shows that David Carickhoff of Archer & Greiner PC will be the Trustee who will administer the bankruptcy estate.
John Bird is a bankruptcy attorney with the law firm of Fox Rothschild LLP. John is admitted in Delaware and regularly practices before the United States Bankruptcy Court for the District of Delaware. You can reach John at (302) 622-4263 or at firstname.lastname@example.org.