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 recei ...

based in

Irving, Texas Irving is a city in the U.S. state of Texas. Located in Dallas County, it is also an inner ring suburb of Dallas. The city of Irving is part of the Dallas–Fort Worth metroplex. According to a 2019 estimate from the United States Census Bur ...

. Adeptus Health operates free-standing

emergency rooms An emergency department (ED), also known as an accident and emergency department (A&E), emergency room (ER), emergency ward (EW) or casualty department, is a medical treatment facility specializing in emergency medicine, the acute care of pa ...

throughout

Texas Texas (, ; Spanish language, Spanish: ''Texas'', ''Tejas'') is a state in the South Central United States, South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2 ...

and

Arizona Arizona ( ; nv, Hoozdo Hahoodzo ; ood, Alĭ ṣonak ) is a U.S. state, state in the Southwestern United States. It is the list of U.S. states and territories by area, 6th largest and the list of U.S. states and territories by population, 14 ...

. It is the

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

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 stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( l ...

in June 2014, filed for bankruptcy in June 2017, and was acquired by

hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as ...

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 Flower Mound is an incorporated town located in Denton and Tarrant counties in the U.S. state of Texas. Located northwest of Dallas and northeast of Fort Worth adjacent to Grapevine Lake, the town derives its name from a prominent mound loca ...

. 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 investme ...

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 of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed ...

with 4.9 million shares at $22 per share under the

ticker symbol A ticker symbol or stock symbol is an abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. In short, ticker symbols are arrangements of symbols or characters (generally Latin letters ...

NYSE:ADPT. Also in 2014, Adeptus created a joint venture with

Dignity Health Dignity Health (formerly Catholic Healthcare West) was a California-based not-for-profit public-benefit corporation that operates hospitals and ancillary care facilities in three states. Dignity Health was the fifth-largest hospital system in the ...

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: University of Colorado Boulder, University of Colorado Colorado Springs, University of Colorado Denver, and the University o ...

UCHealth UCHealth (University of Colorado Health) is a not-for-profit health care system, headquartered in Aurora, Colorado. The system includes hospitals and facilities throughout Colorado, along with affiliated hospitals in Wyoming and Nebraska. The ...

to develop emergency care facilities in

Denver Denver () is a consolidated city and county, the capital, and most populous city of the U.S. state of Colorado. Its population was 715,522 at the 2020 census, a 19.22% increase since 2010. It is the 19th-most populous city in the United ...

Colorado Springs Colorado Springs is a home rule municipality in, and the county seat of, El Paso County, Colorado, United States. It is the largest city in El Paso County, with a population of 478,961 at the 2020 United States Census, a 15.02% increase since ...

, and

northern Colorado Northern Colorado is the name for a region in the state of Colorado and a proposed state in the northeastern portion of Colorado. Region Northern Colorado is a region in the northern portion of Colorado. It borders northwestern Colorado, northe ...

, including 12 existing First Choice emergency rooms along with two new ones. Adeptus also partnered with San Francisco-based

to establish the Dignity Health Arizona General Hospital in

Laveen, Arizona Laveen is a community in Maricopa County, Arizona, United States, situated southwest of Downtown Phoenix, between South Mountain and the confluence of the Gila and Salt rivers. Parts of Laveen constitute an unincorporated community in Marico ...

.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 Texas Health Resources is one of the largest faith-based, nonprofit health systems in the United States and the largest in North Texas in terms of inpatients and outpatients served. The health system includes Texas Health Physicians Group and ho ...

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 Mount Carmel Health System is the second-largest health care system in central Ohio. They employ over 8,000 employees and 1,500 doctors in their numerous outpatient facilities and their four hospitals: Mount Carmel East near Reynoldsburg, Mount ...

to build and operate emergency rooms in Ohio under the Mount Carmel brand. Adeptus reached an agreement with the

Ochsner Health System Ochsner Health System is a not-for-profit health system based in the New Orleans metropolitan area of southeast Louisiana, United States. it is the largest non-profit, academic healthcare system operating in Louisiana, with 40 medical facilitie ...

to build and operate emergency rooms in

Louisiana Louisiana , group=pronunciation (French: ''La Louisiane'') is a U.S. state, state in the Deep South and South Central United States, South Central regions of the United States. It is the List of U.S. states and territories by area, 20th-smal ...

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

of its

Class A share In finance, a class A share refers to a share classification of common or preferred stock that typically has enhanced benefits with respect to dividends, asset sales, or voting rights compared to Class B or Class C shares. There may be rest ...

s. After bankruptcy in 2017, healthcare-focused

Deerfield Management acquired control. In December 2020, Adeptus filed for Voluntary Chapter 7 Bankruptcy

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 part ...

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 Texas, the Southern United States#Major cities, most populous city in the Southern United States, the List of United States cities by population, fourth-most pop ...

, Austin,

Dallas Dallas () is the List of municipalities in Texas, third largest city in Texas and the largest city in the Dallas–Fort Worth metroplex, the List of metropolitan statistical areas, fourth-largest metropolitan area in the United States at 7.5 ...

, Fort Worth,

San Antonio ("Cradle of Freedom") , image_map = , mapsize = 220px , map_caption = Interactive map of San Antonio , subdivision_type = Country , subdivision_name = United States , subdivision_type1= State , subdivision_name1 = Texas , subdivision_t ...

, 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 (, other variants) is a state in the Mountain states, Mountain West subregion of the Western United States. It encompasses most of the Southern Rocky Mountains, as well as the northeastern portion of the Colorado Plateau and the wes ...

. 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

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. Of the List of states and territories of the United States, fifty U.S. states, it is the List of U.S. states and territories by area, 34th-l ...

Class action lawsuit

In 2016, a

class action A class action, also known as a class-action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class action ...

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 Amos Louis Mazzant III (born February 22, 1965) is a United States district judge of the United States District Court for the Eastern District of Texas and former United States magistrate judge of the same court. Biography Mazzant was born in E ...

in the

Eastern District of Texas The United States District Court for the Eastern District of Texas (in case citations, E.D. Tex.) is a federal court in the Fifth Circuit (except for patent claims and claims against the U.S. government under the Tucker Act, which are appealed t ...

, 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 landma ...

.''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 Room
{{authority control 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 2017 mergers and acquisitions