Bradenton, Fla.-based MCR Health, a nonprofit medical group, sought Chapter 11 protection Nov. 11, the Tampa Bay Business Journal reported Nov. 13.
Court documents filed in Florida revealed MCR has approximately $14.4 million in debt. Around $12 million of that is in loans and $2.4 million is in unsecured creditors, the Journal reported.
"In order to continue to allow MCR Health to remain a leader in providing healthcare and access for all, we have made some difficult decisions to align with our financial reality," a spokesperson for MCR Health said in a Nov. 13 statement shared with Becker's. "These operational decisions, including workforce reductions, will be rolled out in phases."
The filing cited damages and disruptions from hurricanes Helene and Milton as reasons behind the bankruptcy. Changes to reimbursement rates for behavioral health services were also noted in the filings, which cut MCR's revenue almost in half without notice. According to MCR's attorney, Steven Berman, the organization's leadership is gaining ground on reversing the rate change.
Details on which of MCR's 24 leased locations could be affected by the bankruptcy are not available yet, according to the report.