Bob Herman has been closely following the financial meltdown of Adeptus Health, the freestanding emergency room chain that used to be a darling on Wall Street with a $2.5 billion market cap. Well, Adeptus is really close to full-blown "dumpster fire" status.
What's happening: Last week, investment firm Wexford Capital bought more than 40 percent of Adeptus. Wexford, which specializes in troubled companies, said at the time that Adeptus may need to go through bankruptcy, but "the fundamentals of [Adeptus'] business appear to be sound." Fast forward to this week, and Wexford has bailed on every last share it bought. Those fundamentals don't seem so sound anymore.
The bottom line: Wexford didn't respond to questions from Axios. Adeptus has also been extremely tight-lipped and now will officially go through bankruptcy with hedge fund Deerfield Management. But the lesson remains the same: Adeptus' freestanding ER model has been too expensive to manage, and patients have been put off by surprisingly high facility charges.