Adeptus Health Inc. was a

health care provider A health care provider is an individual health professional or a health facility organization licensed to provide health care diagnosis and treatment services including medication, surgery and medical devices. Health care providers often rece ...

based in

Irving, Texas Irving is a city in Dallas County, Texas, United States. It is part of the Mid-Cities region of the Dallas–Fort Worth metroplex and is an Inner suburb, inner city suburb of Dallas. Irving is noted for its #Demographics, racial and ethnic diver ...

. Adeptus Health operates free-standing emergency rooms throughout

Texas Texas ( , ; or ) is the most populous U.S. state, state in the South Central United States, South Central region of the United States. It borders Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the we ...

and

Arizona Arizona is a U.S. state, state in the Southwestern United States, Southwestern region of the United States, sharing the Four Corners region of the western United States with Colorado, New Mexico, and Utah. It also borders Nevada to the nort ...

. It is the

parent company A holding company is a company whose primary business is holding a controlling interest in the Security (finance), securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own Share ...

of the oldest and largest freestanding emergency-room network in the United States, First Choice Emergency Room. Adeptus Health became a

public company A public company is a company whose ownership is organized via shares of share capital, stock which are intended to be freely traded on a stock exchange or in over-the-counter (finance), over-the-counter markets. A public (publicly traded) co ...

in June 2014, filed for

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the deb ...

in June 2017, and was acquired by

hedge fund A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...

Deerfield Management later in 2017. In 2016, Adeptus Health was included on '' Fortune's'' list of the "20 Best Workplaces in Health Care".

History

Adeptus Health was founded in 2002 with its first emergency room located in a Dallas suburb, Flower Mound, Texas. Thomas Hall is the president and chief executive officer (CEO) of Adeptus Health. Previously, Hall was the president and CEO of NovaMed. In June 2014, Adeptus Health launched its

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...

on the

New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...

with 4.9 million shares at $22 per share under the ticker symbol NYSE:ADPT. Also in 2014, Adeptus created a joint venture with Dignity Health to open a hospital in Arizona. In 2015, the company announced a partnership with

University of Colorado The University of Colorado (CU) is a system of public universities in Colorado. It consists of four institutions: the University of Colorado Boulder, the University of Colorado Colorado Springs, the University of Colorado Denver, and the U ...

's UCHealth to develop emergency care facilities in

Denver Denver ( ) is a List of municipalities in Colorado#Consolidated city and county, consolidated city and county, the List of capitals in the United States, capital and List of municipalities in Colorado, most populous city of the U.S. state of ...

Colorado Springs Colorado Springs is the most populous city in El Paso County, Colorado, United States, and its county seat. The city had a population of 478,961 at the 2020 census, a 15.02% increase since 2010. Colorado Springs is the second-most populous c ...

, and northern Colorado, including 12 existing First Choice emergency rooms along with two new ones. Adeptus also partnered with San Francisco-based Dignity Health to establish the Dignity Health Arizona General Hospital in Laveen, Arizona.Dignity Health, Adeptus Health announce joint venture
Shannon Barnet. October 23, 2014. Becker's. December 8, 2015. In May 2016, Adeptus reached an agreement with Texas Health Resources in which it rebranded 27 First Choice Emergency Rooms, and all of the FCERs in Dallas–Fort Worth, under the Texas Health name. In August 2016, the company reached an agreement with the Mount Carmel Health System to build and operate emergency rooms in Ohio under the Mount Carmel brand. Adeptus reached an agreement with the Ochsner Health System to build and operate emergency rooms in

Louisiana Louisiana ( ; ; ) is a state in the Deep South and South Central regions of the United States. It borders Texas to the west, Arkansas to the north, and Mississippi to the east. Of the 50 U.S. states, it ranks 31st in area and 25 ...

under the Ochsner name in September 2016. In April 2017, Adeptus Health filed for

. In October 2017 it announced its financial restructuring, which included the

delisting Delisting may refer to: * Delisting (Canadian medicare), the removal of medical coverage for a certain operation by Canadian medicare * Delisting (listed building), the removal of protected status from a listed building * Delisting (stock), the ...

of its Class A shares. After bankruptcy in 2017, healthcare-focused

Deerfield Management acquired control. In December 2020, Adeptus filed for

Chapter 7 bankruptcy Chapter 7 of Title 11 U.S. Code is the bankruptcy code that governs the process of liquidation under the bankruptcy laws of the United States. This is in contrast to bankruptcy under Chapter 11 and Chapter 13, which govern the process of ''re ...

Operations

Adeptus Health operates

for-profit hospital For-profit hospitals, sometimes referred to as alternatively investor-owned hospitals, are investor-owned hospitals or hospital networks. Many of the for-profit hospitals are located in Europe and North America, with many of them established parti ...

s and a network of freestanding emergency rooms. It is the

of First Choice Emergency Room. Prior to reaching agreements with healthcare networks, the company owned and operated 52 First Choice Emergency Room facilities located in

Houston Houston ( ) is the List of cities in Texas by population, most populous city in the U.S. state of Texas and in the Southern United States. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the county seat, seat of ...

, Austin,

Dallas Dallas () is a city in the U.S. state of Texas and the most populous city in the Dallas–Fort Worth metroplex, the List of Texas metropolitan areas, most populous metropolitan area in Texas and the Metropolitan statistical area, fourth-most ...

Fort Worth Fort Worth is a city in the U.S. state of Texas and the county seat of Tarrant County, Texas, Tarrant County, covering nearly into Denton County, Texas, Denton, Johnson County, Texas, Johnson, Parker County, Texas, Parker, and Wise County, Te ...

San Antonio San Antonio ( ; Spanish for " Saint Anthony") is a city in the U.S. state of Texas and the most populous city in Greater San Antonio. San Antonio is the third-largest metropolitan area in Texas and the 24th-largest metropolitan area in the ...

, and

. Within

, as of March 2017, Adeptus operated 10 freestanding emergency rooms that were co-branded with Dignity Health's Arizona General Hospital.

First Choice Emergency Room

First Choice Emergency Room is the operating name under which Adeptus Health operates freestanding emergency rooms in Texas and

Colorado Colorado is a U.S. state, state in the Western United States. It is one of the Mountain states, sharing the Four Corners region with Arizona, New Mexico, and Utah. It is also bordered by Wyoming to the north, Nebraska to the northeast, Kansas ...

. It is the largest and oldest such provider in the US. First Choice was founded by Jack Novak in 2002. ''Inc.'' Magazine ranked First Choice as one of the fastest-growing businesses in the U.S. in 2010, 2011, and 2012 under CEO and founder, Novak. In 2012, Sterling Partners invested $59 million in the business. First Choice generated $98.5 million in revenue in 2012, up from $41.3 million in 2009. The company had 52 locations after an aggressive expansion in 2014, but as of July 2020 most locations had closed. In May 2016, Adeptus Health reached an agreement with Texas Health Resources to align its First Choice Emergency Room locations and rebrand most of its Texas locations as Texas Health Facilities. In August 2016, Adeptus reached a similar agreement with Mount Carmel Health System in

Ohio Ohio ( ) is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders Lake Erie to the north, Pennsylvania to the east, West Virginia to the southeast, Kentucky to the southwest, Indiana to the ...

Class action lawsuit

In 2016, a

class action A class action is a form of lawsuit. Class Action may also refer to: * ''Class Action'' (film), 1991, starring Gene Hackman and Mary Elizabeth Mastrantonio * Class Action (band), a garage house band * "Class Action" (''Teenage Robot''), a 2002 e ...

lawsuit was filed against Adeptus Health (as well as members of the Company’s board of directors, Sterling Partners, and the joint book-running managers in the Company’s secondary public offering of shares of its Class A common stock) by purchasers of its securities alleging that the company violated the federal securities laws and made false and/or misleading statements, failing to disclose its internal control over

financial reporting Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to un ...

and the overall status of its business operations."Form 8-K"
/ref> The case is ''Oklahoma Law Enforcement Retirement System v. Adeptus Health Inc.'', before Judge Amos L. Mazzant III in the Eastern District of Texas, and is under Sections 11, 12(a)(2), and 15 of the

Securities Act of 1933 The Securities Act of 1933, also known as the 1933 Act, the Securities Act, the Truth in Securities Act, the Federal Securities Act, and the '33 Act, was enacted by the United States Congress on May 27, 1933, during the Great Depression and afte ...

, as well as Section 10(b) and 20(a) of the

Securities Exchange Act of 1934 The Securities Exchange Act of 1934 (also called the Exchange Act, '34 Act, or 1934 Act) (, codified at et seq.) is a law governing the secondary trading of securities (stocks, bonds, and debentures) in the United States of America. A land ...

.''Oklahoma Law Enforcement Retirement System v. Adeptus Health Inc.''
/ref> In 2020, the court approved the payment of $44 million securities settlement to conclude the class action lawsuit. The settlement included all entities and investors who purchased Adeptus Class A common stock from 2014 to 2017. In 2017, a man from Colorado sued Adeptus and sought class action status involving the facility fees it charged patients. It was alleged that the company took advantage of marketplace confusion and defrauded consumers through its failure to disclose excessive costs.

References

External links

First Choice Emergency RoomBankruptcy Attorney
{{Portal bar, Companies, USA} American companies established in 2002 Health care companies based in Texas Companies based in Irving, Texas Companies formerly listed on the New York Stock Exchange Health care companies established in 2002 2002 establishments in Texas Class action lawsuits Emergency medicine organisations 2014 initial public offerings Companies that filed for Chapter 11 bankruptcy in 2017 Companies that have filed for Chapter 7 bankruptcy Companies that filed for Chapter 7 bankruptcy in 2020 2017 mergers and acquisitions