Technology-enabled healthcare services giant Modivcare Inc. filed for Chapter 11 protection in a Texas bankruptcy court late Wednesday, setting the stage for a sweeping recapitalization effort aimed at slicing a staggering $1.1 billion in debt.
The company revealed that the restructuring plan already enjoys broad backing from secured lenders, who agreed to inject $100 million in debtor-in-possession financing. The funds will allow Modivcare to maintain daily operations while navigating the high-stakes bankruptcy process.
CEO Frames Bankruptcy as Strategic Reset
Modivcare’s President and CEO, Heath Sampson, struck an optimistic tone in the announcement, calling the move less a retreat and more a calculated reset.
“This recapitalization strengthens our balance sheet and allows Modivcare to accelerate our investment in innovation by combining technology and data with high-touch member engagement,” Sampson said.
He emphasized Modivcare’s central role as a “connector to care,” underscoring the company’s mission to improve access, quality, and costs for payors, providers, and facilities.
