Is HealthSmart TPA for sale? Word on the street says it is so.
Our sources tell us HealthSmart has laid off 80 key employees, has implemented a hiring freeze and has ended all executive bonus’s until further notice.
Sources say HealthSmart has tried all kinds of strategies in an attempt to be marketable to a potential buyers over the last number of years. But, according to our sources, HealthSmart is way upside down in debt vs assets and they have been trying to acquire their way out most recently, with motivated vigor.
A recent lawsuit settlement with the Brownsville Independent School District provides indications of HealthSmart’s financial woes. Cash settlement of $ 2 million with a $1 million “down payment” with the promise of paying the additional $1 million if able may be a clear indication of the depth of HealthSmart’s finances.
Silver Point, equity investment firm with controlling interest in HealthSmart may have to sell at a steep discount according to our sources. Will they?