Health Care Deliverer Liberty Medical Filing for Bankruptcy
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Health Care Deliverer Liberty Medical Filing for Bankruptcy

February 27, 2013


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Liberty Medical Supply Inc., a large medical equipment company that provides aid to more than a million Americans with diabetes, is filing for bankruptcy, according to a report from Reuters.

The company filed last week in the U.S. Bankruptcy Court in Wilmington, Delaware, where it claimed that its assets and liabilities fell somewhere between $100 million and $500 million.

In addition to Liberty Medical’s decision to file for bankruptcy, nine of the company’s affiliates, including Polymedica Corp. and Liberty Healthcare Group Inc., are also seeking debt relief through the court.

Liberty Medical delivers health care equipment to the homes of millions of Americans, and specializes in the delivery of supplies for treating diabetes, according to the company’s website.

As the Baby Boomer generation continues to age, the demand for home delivery of medical equipment has grown, and the struggles of a company like Liberty Medical could complicate the lives of people who depend on its deliveries to maintain their health.

Of course, while the bankruptcy could affect a vast number of patients, it may also have a significant impact on the company’s employees. Sources say Liberty Medical has close to 5,000 workers in its ranks.

Sources note that the group’s largest unsecured creditor is CGS Administrators, which claims to be owed more than $137 million. The next biggest creditors are Express Scripts Holding Co., which filed a bankruptcy claim for $14.2 million, and Abbott Laboratories, the Illinois-based pharmaceutical company that says Liberty medical owes it at least $5 million.

Liberty Medical, which is based in Florida, claims that "several unexpected events" led to the decision to file, according to a report from Bloomberg News. Sources say these events included a prolonged dispute with tax officials, as well as a disagreement with the Center for Medicare and Medicaid Services.

Despite the presence of these troubles in the background, company officials believe that their work is too important to abandon because of temporary financial ills.

According to Frank Harvey, Liberty Medical’s chief executive officer, the company plans to remain focused on its "critical mission to positively impact the lives of our patients."

Of course, in order to continue to help its patients, the company will have to settle its debts in bankruptcy court, and resolve its current disputes with government officials.

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