Case filing & court posture: The Villages Health System, LLC filed chapter 11 on July 3, 2025, in the U.S. Bankruptcy Court for the Middle District of Florida (Case No. 6:25-bk-04156-LVV) before Judge Lori V. Vaughan. Dkt. 1 The debtor operated 10 primary and specialty care centers serving Medicare Advantage patients in North Central Florida, employing over 800 staff and 80+ physicians.
Liquidity & financing path: At filing, the debtor held a $15 million prepetition secured credit line from PMA Lender LLC. Dkt. 60 On July 11, 2025, the Court approved interim postpetition financing of up to $46 million from PMA Lender, including $24 million in new money at 12% fixed interest. The debtor filed for bankruptcy after discovering HCC coding issues in August 2024 that created potential Medicare overpayments estimated at $350 million or more, and made a voluntary self-disclosure to the OIG in December 2024.
Asset sale & restructuring outcome: The Court approved bidding procedures on July 28, 2025, Dkt. 110 and on September 9, 2025, entered an order approving the sale of substantially all assets to CenterWell Senior Primary Care (FL), Inc. for $68 million. Dkt. 222 The sale closed on November 7, 2025. The debtor reached a $541.5 million settlement with the DOJ to resolve HCC coding-related overpayment issues.
Plan & post-confirmation status: On January 29, 2026, the debtor filed a liquidating Plan of Reorganization Dkt. 387 and Disclosure Statement Dkt. 388 designating Neil Luria as Liquidating Trustee. The Plan incorporates the DOJ settlement and provides for distributions from sale proceeds. Plan confirmation remains pending as of February 2026.