CCS Oncology and Health Care LLC has announced it has filed for Chapter 11 bankruptcy protection due to its excessive debt load.
CCS Oncology is under federal investigation regarding possible Medicaid fraud and unpaid taxes to federal and state coffers. The filing allows CCS to continuing to care for patients on a day-to-day basis.
Last month, a federal district judge allowed Bank of America to seize CCS' assets due to $16 million in overdue debt payments. Federal agents raided CCS offices and clinics last week as part of their investigation into the practice.
CEO Dr. Sam Yi, in a statement, says the move "will position CCS for success in the future." CCS will continue radiation and chemotherapy treatment operations. Yi says arrangements have been made for non-cancer related practices to "transition in an orderly fashion to ensure continuity of care to our loyal patients.”
Through the restructuring, CCS says it expects to achieve "long-term financial sustainability" which will allow the company to invest further in its medical technology.