LEWISVILLE, Texas, March 23, 2017 /PRNewswire/ -- Adeptus Health
Inc. (NYSE: ADPT) (the "Company") announced today that, as a
result of its failure to timely file its Annual Report on Form 10-K
for the fiscal year ended December 31,
2016 (the "Form 10-K"), it has received a notice from the
New York Stock Exchange (the "NYSE") that the Company is not in
compliance with the NYSE's continued listing requirements under the
timely filing criteria established in Section 802.01E of the NYSE
Listed Company Manual.
As previously disclosed, the Company's delay in filing the Form
10-K is due principally to the additional time the Company requires
to complete its analysis of impairment of goodwill, intangible
assets and investments in unconsolidated subsidiaries and
evaluation of the need to write down its deferred tax assets. In
addition, the Company has identified material weaknesses with
respect to internal control over financial reporting in the areas
of revenue recognition, accounts receivable, accounting for a
contribution to an unconsolidated joint venture, and accounting for
equity in (loss) earnings of unconsolidated joint ventures. Related
to these areas where material weaknesses have been identified, the
Company is evaluating the effect of errors in its condensed
consolidated financial statements and consolidated financial
statements for prior periods. An analysis of root causes and
remediation plans are still in process. Also, there remains
substantial doubt about the Company's ability to continue as a
going concern absent its securing committed long-term financing.
Finally, the Company requires additional time to complete its
financial closing procedures. The Company will not be able to file
the Form 10-K until such matters have been resolved and the audit
of its consolidated financial statements for 2016 is completed. The
Company will file the Form 10-K as soon as practicable.
The NYSE informed the Company that, under the NYSE's rules, the
Company will have six months from March 16,
2017 to file the Form 10-K with the SEC. The Company can
regain compliance with the NYSE listing standards before that date
by filing the Form 10-K with the SEC.
About Adeptus Health Inc.
Adeptus Health (NYSE:ADPT) is a leading patient-centered
healthcare organization expanding access to the highest quality
emergency medical care through its network of freestanding
emergency rooms and partnerships with premier healthcare providers.
Adeptus Health owns and operates First Choice Emergency Room, the
nation's largest and oldest network of freestanding emergency rooms
and owns and/or operates hospitals and freestanding facilities in
partnership with Texas Health Resources in Texas, UCHealth in Colorado, Dignity Health in Arizona, Ochsner Health System in Louisiana and Mount Carmel Health System in
Ohio. All Adeptus Health
freestanding facilities are fully equipped emergency rooms with a
complete radiology suite of diagnostic technology, on-site
laboratory, and staffed with board-certified physicians and
emergency trained registered nurses. For the last four years,
Adeptus Health has exceeded the 95th percentile in patient
satisfaction according to patient feedback collected nationwide by
Press Ganey Associates Inc. Adeptus Health also was named a 2016
Best Workplaces in Healthcare by Great Place to Work® and Fortune
Magazine. For more information, please visit www.adhc.com.
Cautionary Statement Regarding Forward-Looking
Statements
This communication contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements by their nature address matters
that are, to different degrees, uncertain. Forward-looking
statements involve a number of assumptions, risks and uncertainties
that could cause actual results to differ materially. Any
forward-looking statements herein are made as of the date of this
filing, and the Company undertakes no duty to update or revise any
such statements except as required by the federal securities laws.
Forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties. Important factors that
could cause actual results, developments and business decisions to
differ materially from forward-looking statements are described in
ADPT's filings with the U.S. Securities and Exchange Commission
("SEC") from time to time and which are accessible on the SEC's
website at www.sec.gov. Among the factors that could cause future
results to differ materially from those provided in this
communication are: our inability to execute a restructuring that
maximizes value for all constituents while minimizing disruption to
the Company's operations; the risk that the analyses and
evaluations discussed above are not completed in a timely manner;
the risk that the failure to file the Company's Form 10-K for the
fiscal year ended December 31, 2016
in a timely manner could lead to the acceleration of the maturity
of certain of the Company's indebtedness and other financial
obligations or the delisting of the Company's Class A common stock
by the NYSE; the risk that these or other risk factors impact the
expected timing of the filing of the Form 10-K for the fiscal year
ended December 31, 2016; our ability
to implement our growth strategy; delays in conversion of patient
receivables into cash, as well as increased potential for bad debt
expense, associated with deficiencies in billing and collections
related to our services; our ability to protect our brand; federal
and state laws and regulations relating to our facilities, which
could lead to the incurrence of significant penalties by us or
require us to make significant changes to our operations; our
ability to locate available facility sites on terms acceptable to
us; competition from hospitals, clinics and other emergency care
providers; our dependence on payments from third-party payors; our
ability to source and procure new products and equipment to meet
patient preferences; our reliance on Medical Properties Trust
("MPT") and the MPT Master Funding and Development Agreements;
disruptions in the global financial markets leading to difficulty
in borrowing sufficient amounts of capital to finance the carrying
costs of inventory to pay for capital expenditures and operating
costs; our ability or the ability of our healthcare system partners
to negotiate favorable contracts or renew existing contracts with
third-party payors on favorable terms; significant changes in our
payor mix or case mix resulting from fluctuations in the types of
cases treated at our facilities; significant changes in the rules,
regulations and systems governing Medicare and Medicaid
reimbursements; material changes in IRS revenue rulings, case law
or the interpretation of such rulings; shortages of, or quality
control issues with, emergency care-related products, equipment and
medical supplies that could result in a disruption of our
operations; the intense competition we face for patients, physician
use of our facilities, strategic relationships and commercial payor
contracts; the fact that we are subject to significant malpractice
and related legal claims; the growth of patient receivables or the
deterioration in the ability to collect on those accounts; the
impact on us of PPACA, which represents a significant change to the
healthcare industry; and ensuring our continued compliance with
HIPAA, which could require us to expend significant resources and
capital; and the factors discussed in the section entitled "Risk
Factors" in the Company's Form 10-K for the fiscal year ended
December 31, 2015 and its Form 10-Q
for the three and nine months ended September 30, 2016.
Media Contact:
Joel
Moore
Hill+Knowlton Strategies
Tel: (212) 885-0468
Email: Joel.Moore@hkstrategies.com
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SOURCE Adeptus Health Inc.