Wound Management Specialists in Flowood filed for bankruptcy while owing hundreds of millions of dollars.
The health care company submitted a Chapter 11 bankruptcy petition in U.S. Bankruptcy Court on August 18. The petition states Wound Management has assets between $10 million and $50 million while suffering liabilities between $100 million and $500 million.
CEO Thomas McMahon signed the petition.
The company owes quite a bit of money. The top creditors are:
Advanced Healthcare: $77.9 million
Centers for Medicare & Department of Health: $42.7 million
Smith & Nephew, Inc: $510,046
Mimedx Group: $345,460
Legacy Medical Consultants: $175,775
Blue Cross/Blue Shield: $284,098
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The company reported gross revenue of $78 million this fiscal year (beginning October 1), $382 million in FY 2025, and $179 million in FY 2024.
19 comments:
GLP-1's reducing the need to have wound care?
Revenue more than doubled from FY24 to FY25 but revenue fell by 75% in FY26? Sounds shady
What doctors run this facility? I’ve never heard of it
I use several wound care places but not this one. How does a health care provider owe money to the Medicare folks....Unless they are being charged with false claims?
I've spent hours on the phone over 8 months (including this pm) begging a Laurel Hospital to please file a claim correctly against my insurance company instead of billing me what the insurance company owes them and the hospital blames their own billing department and hangs up on me. Some health outfits are very inefficient and unprofessional.
Doctors running businesses is like lawyers running the state. Same outcome.
Owing hundreds of millions of dollars with that kind of revenue is reckless, almost like the Jackson Hilton shedding 55 million in debt and selling itself for 5 or 6 million. Kind of a good deal for the owner, horrible news for those owed. I wonder if the owners siphon tens of millions for the huge payday in one year, drag out paying creditors and don't even try to do business in the following year to file BK to shed the debt and be back to doing good without the weight of that debt.
Businesses file bankruptcy all the time. This is not news. Decline the invite to speculate into financial matters.
It’s news that me 8.25, or Thomas. Interesting that we have a local business, I have never heard of, that owes that much money.
Its largest alleged creditor appears to be a related company. Something is odd about this filing. How does this company owe a nursing home group 70+ million dollars?
Something is afoot!
The Medical industrial complex will get to the GLP-1 test subjects later So they can sell a new drug to treat the side effects of the GLP-1 s 🤔
Medicare likely changed what they pay for their services and wound care was left holding a bag of expensive product it could not bill for. Maybe a qui tam is lying for fraud. It’s odd indeed. Even more odd? Craig Geno has a law partner.
CMS reduced payment for skin substitutes by over 90% in Jan 2026. Many wound care companies have gone out of business. CMS spent $252 million on skin substitutes in 2019. The costs rose 7,100 times over the next 6 years to $14.1 billion for 2025. This incredible increase in costs and utilization of skin substitutes forced congress to scale back reimbursement. DOJ has launched many investigations into fraud and abuse in the wound care industry.
A lot of the same group appears to have started Strategic Solutions in its place.
How do you owe this much money in one company while also operating as the CEO of another (Strategic Solutions)? SUPER shady!
The claim is that this business OWES Medicare a huge amount of money. You haven't touched on how that can happen.
If this is not news, as you claim, we would not be looking at forty unanswered questions on this site. Ya reckon?
9/24@10:35 See RAC Audit. Used fraudulent coding to collect from Medicare, RAC audit, now they owe all they collected back to Medicare...that's my guess!
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