Bankruptcy isn’t the only Miami Cano Health news. There’s also a license suspension

Before Miami’s Cano Health declared Chapter 11 bankruptcy last week, the state smacked one of the healthcare company’s locations with an emergency license suspension order.

And that Jan. 26 emergency suspension order (ESO) came down the day after yet another Cano Health landlord posted a lease termination for failure to pay rent for three months.

That notice remains stuck on the door of now-empty offices on 2380 and 2390 NW Seventh St., a building on the Little Havana promenade dotted with present and recently past healthcare facilities. One in the latter group is another former Cano Health location, 2344 NW Seventh St., where the only remaining sign of the company’s presence is the address marker.

The company logo on the tombstone-shaped marker has been painted over in solid Cano Health blue.

License suspension for Cano Health-Hialeah

The Cano Health in a slice of unincorporated Miami-Dade between Miami and Hialeah remains open at 3448 NW 79th Ave. but it can’t deliver therapeutic massages.

The Cano Health branch called Cano Health-Hialeah received an emergency suspension order from the Florida Surgeon General nine days before the company filed for Chapter 11 bankruptcy.
The Cano Health branch called Cano Health-Hialeah received an emergency suspension order from the Florida Surgeon General nine days before the company filed for Chapter 11 bankruptcy.

The ESO says all licensed massage establishments must have a licensed massage therapist as a designated establishment manager (DEM).

“On Nov. 30, the Department of Health learned that the DEM no longer works at Cano,” the ESO said. “On Dec. 13, the Department learned that the licensed massage therapist identified to the Department as the DEM denied ever being Cano’s DEM.

“On or before Nov. 30, 2023 and the date of this order, Cano failed to have a DEM practicing at its location.”

Cano Health didn’t answer an emailed inquiry from the Miami Herald about the suspension.

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Cano and the rent

The list of those in Miami having trouble paying the rent apparently includes Cano Health.

A scan of Miami-Dade civil court filings shows Lakeside Center Shoppes filed suit on Dec. 4 and got a final judgment for eviction on Jan. 24 for 13750 NW 107th Ave., Unit Nos. 101-107 in Hialeah Gardens.

On Dec. 8, CCD PR No. 11 LLC said in a court filing that Cano owed $76,363.79 in rent for 5605 NW 82nd Ave. in Doral.

Another Doral landlord, 107 Commercial Property LLC, said on Dec. 12 that Cano didn’t pay November or December rent for 3301 NW 107th Ave. and owed the entire amount of the rest of the lease, $6,908,783.

HTA-AW Palmetto filed suit on Dec. 12 looking for $72,666.20 in back rent, plus attorneys fees and costs, claiming Cano stopped paying rent last fall for 7120 W. 20th Ave., Suite 304 in Hialeah.

State records say 2380 and 2390 NW Seventh St. is owned by 2380-90 NW 7 Street LLC, a company formed by Doral’s Luis Fajardo and Ric Arcadi to buy the building from Jaafar Investment Group in October 2022. Ali Hussein Jaafar’s Pinnacle Imaging had been located there until 2022 and the building still bears its logos.

But the front door bears a notice posted by 2380-90 NW 7 Street attorney Jerry Borbon of Bauer, Gutierrez & Borbon with a three-day notice to vacate or pay $168,703.76 in rent for November, December and January.

The notice on the door of 2380-90 NW Seventh St. in Miami, declaring Cano Health owes back rent.
The notice on the door of 2380-90 NW Seventh St. in Miami, declaring Cano Health owes back rent.

Lakeside Center, the first to file, had a writ of possession issued Friday. But Lakeside still hadn’t acted fast enough to get their property from Cano before bankruptcy locked the door. The Chapter 11 filing put the cases on inactive status.

“In most instances, the filing of the bankruptcy case automatically stays certain collection and other actions against the debtor and the debtor’s property,” U.S. Bankruptcy Court Clerk Una O’Boyle wrote. “Under certain circumstances, the stay may be limited to 30 days or not exist at all, although the debtor can request the court to extend or impose a stay. If you attempt to collect a debt or take other action in violation of the Bankruptcy Code, you may be penalized.”

This covers Cano Health, Belen Medical Centers, Healthy Partners, Doctors Medical Center, Healthy Partners Primary Care, University Health Care and Doctors Medical Pediatrics.

Spinning into bankruptcy

“Reorganization” is the word most often associated with a Chapter 11 bankruptcy, as the federal courts website explains.

“Usually, the debtor remains “in possession,” has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money,” the site says. “A plan of reorganization is proposed, creditors whose rights are affected may vote on the plan, and the plan may be confirmed by the court if it gets the required votes and satisfies certain legal requirements.”

In its announcement of starting Chapter 11 proceedings, Cano said some secured lenders have committed $150 million for debtor-in-possession financing.

“This new capital is expected to provide sufficient liquidity to support [Cano Health’s] ongoing operations throughout the restructuring process,” Cano said in its announcement.