Chain Of Mental Health Clinics Declares Bankruptcy

Sanford, Florida-based Coastal Mental Health (Coastal) recently filed for Chapter 11 bankruptcy. The company, which oversees eight locations throughout the region, declared it was more than $500,000 in debt—an issue exacerbated by the 30 to 50% interest rate on the debt.

For now, the clinic anticipates remaining open while the company attempts to reorganize its debts following the freezing of its bank accounts. The entire ordeal follows a whistleblower lawsuit filed against the company in 2017, in which employees alleged that management was engaging in Medicare fraud. While the case was dismissed in December, a judge has . . .