21st Century Oncology files for bankruptcy – Sarasota Herald-Tribune

Cancer treatment firm says operations will not be affected

Cancer treatment network 21st Century Oncology Holdings Inc. has filed for Chapter 11 bankruptcy, seeking to shed $500 million in debt.

The Fort Myers-based company said the filing would not disrupt service at its 179 treatment centers, including nearly two dozen in Sarasota, Manatee and Charlotte counties.

The company, which calls itself the largest global provider of integrated cancer care services, cited changes to insurance reimbursement rates and political uncertainly in the health insurance market for needing to seek protection from creditors.

But 21st Century has been struggling with other problems. It has paid nearly $55 million to settle billing fraud allegations and it is being investigated over a data breach in 2015 that affected 2.2 million patients.

The company said its senior lenders will provide $75 million in working capital during its bankruptcy so it can conduct business as usual. Other creditors have agreed to invest $75 million in the reorganized company, which provides radiation treatment, urology, pathology and other cancer-related services.

We are a fundamentally strong and profitable business," interim CEO Paul Rundell said in a news release. "However, we simplyhave too much debt given the size of the business and the way industry dynamics, particularly thechallenging reimbursement environment, have affected our ability to maximize revenue in theaftermath of these unprecedented, ongoing changes."

The company failed to make a $20 million debt payment last fall, leading to speculation that a Chapter 11 filing could be forthcoming. The company posted a net loss of $92.9 million for the nine-month period ended Sept. 30, compared with a $133.9 million loss the year before. Revenues were down 5.1 percent to $774.4 million. The company has not reported year-end results.

Its lenders and bondholders have agreed to reduce the company's debt by $500 million.

The company stressed that patient care would not change. Treatment facilities will operate on normal schedules, and patientsappointments, treatment schedules and physician partners remain the same.

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21st Century Oncology files for bankruptcy - Sarasota Herald-Tribune