Caduceus Physicians Medical Group, a Professional Medical Corporation, and affiliated management services entity Caduceus Medical Services, LLC (CMS, formed July 2023) filed for Chapter 11 protection on August 1, 2024 in the Central District of California (Santa Ana) after the multi-location Orange County physician practice faced worsening operating losses, medical staffing constraints, and reimbursement pressure. Court filings attributed distress to decreased staffing, a shift toward lower-reimbursed telehealth visits, operating losses beginning in 2021, a failed buyer transaction in November 2022, and a renegotiated payor contract that reduced revenue by approximately $350,000 per month. BMO held a first-priority lien against all assets (~$1.2M estimated), with junior secured parties including Backd, LendSpark, and Despierta. A 363 sale initially produced a $1.5 million bid from Regal Medical Group (terminated due to lease failure), with a backup $1.45 million sale to Anchor Medical Group closing May 7, 2025. A Chapter 11 Plan of Liquidation with a liquidating trust administered by CRO Howard B. Grobstein was filed in September 2025. Projected recovery for general unsecured creditors is approximately 1.3% on expected claims of $6.4 million.
