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SynCare files anticipated bankruptcy

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As expected, SynCare LLC has filed for Chapter 7 bankruptcy protection.

The once fast-growing, Indianapolis-based disease-management company listed in court papers on Tuesday liabilities of nearly $5.7 million and assets of just $125,864.

The company’s decline pushed CEO Stephanie DeKemper into personal bankruptcy in late December, with the company itself expected to follow.

SynCare’s largest secured creditors include Fifth Third Bank, which provided two loans totaling $850,000 to the company. The bank filed liens against SynCare in March and May of 2011 in an attempt to recoup a portion of the loans from customer receivables and the value of business equipment, according to court documents.

Unsecured creditors include Bank of America, with a claim totaling $676,964, and Centene Corp. in St. Louis, which provided SynCare a loan totaling nearly $1.5 million.

SynCare effectively ceased operation in September after the Missouri Medicaid program revoked a major contract it had signed with SynCare and after Centene—which was both a client  and a lender to SynCare—stopped funding the company’s operations.

SynCare used nurses and social workers to call and visit Medicaid patients to evaluate their needs and teach them how to handle their health issues, in order to avoid expensive hospitalizations.

DeKemper started at SynCare in 2008 as a consultant and purchased the company in early 2010.

She quintupled the staff over the next year as SynCare took on a $5.5 million contract in Missouri to determine whether Medicaid patients were eligible for home-based care.
 

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  • From the insurance company's point of view
    Terry, it actually is a good and profitable business model given the medicare insurers are 3rd party insurance companies contracted by the state to manage the plan. They are in search of profits and anyway they can keep disbursements down, they can come out ahead. Here's how: If a health care consultant can help a patient manage care to prevent an incident that needs to be treated at the hospital then the insurance company wins since they pay the managed care provider a fraction of what the hospitalization would have cost. The managed care provider is hired by the state or the 3rd party insurance provider to reduce the number of hospitalizations, not by the insured.
  • Poor Business Model
    This business may have sounded good to some, but the idea of managing a Medicare Patient at home by teaching the person "How to manage their health issues" should have been a red flag for the banks. Medicare pays by episode, not by prediction of need, or a Home Based Health Management Consultant. If the patient needs a visiting nurse for a specific reason, there is a Charge Code. I think the banks made a big mistake on this one. If I am missing something on this one, please post how this business model benefits the patient and Medicare.

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  1. OK Larry, let's sign Lance, shore up the PG and let's get to the finals.

  2. A couple of issues need some clarification especially since my name was on the list. I am not sure how this information was obtained and from where. For me, the amount was incorrect to begin with and the money does not come to me personally. I am guessing that the names listed are the Principal Investigators (individual responsible for the conduct of the trail) for the different pharmaceutical trials and not the entity which receives the checks. In my case, I participate in Phase II and Phase III trials which are required for new drug development. Your article should differentiate the amount of money received for consulting, for speaking fees, and for conduct of a clinical trial for new drug development. The lumping of all of these categories may give the reader a false impression of physicians just trying to get rich. The Sunshine Law may help to differentiate these categories in the future. The public should be aware that the Clinical Trial Industry could be a real economic driver for Indiana since these revenues supports jobs and new job creation. Nationally, this account for 10-20 billion which our State is missing out on to a large degree. Yes, new drug and technology development has gotten most of the attention (e.g. CTSI, BioCrossroads, etc.) However, serious money is being left on the table by not participating in the clinical trials to get those new drugs and medical devices on the market!!!! I guess that this is not sexy enough for academia.

  3. The address given for the Goldfish Swim Club is the Ace Hardware, is it closing?

  4. Out of state management and ownership. If Kite controlled it, everything would be leased. Of course, due to the roundabout, there is limited access to the south side of 116th now also. Just have to go down to the light.

  5. Hey smudge, You're opposed to arresting people for minor crimes? Sounds great! We should only focus on murders and such, right? Let's stand around and wait until someone shoots someone before we act. Whatever we do, we should never question anyone, frisk anyone, or arrest anyone unless they are actively engaged in shooting or stabbing. Very sound!

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