Business & Finance
Thu, December 11, 2025
Wed, December 10, 2025
New Hampshire Pain Clinic Collapses, Patients Left Without Care
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Published in Business and Finance on Thursday, December 11th 2025 at 13:26 GMT by New Hampshire Union Leader- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Receiver Appointed to Manage Collapsed Pain Recovery Clinic Business
A sudden collapse of a New Hampshire‑based pain‑management center has left patients scrambling for care and the state’s health regulators scrambling to protect them. The news, first reported by the Union Leader, revealed that a private financial receiver has been named to take over the failed “Pain Recovery Clinic” (PRC) business, a move that is expected to stabilize the company’s assets, preserve patient records, and oversee the orderly disposition of its obligations.
The Collapse
The PRC, which had operated for over a decade under the ownership of the Smith family, had grown into a chain of clinics serving more than 20,000 patients across the state. In late 2024, however, a combination of mounting debt, a cascade of regulatory infractions, and a lack of cash flow forced the clinic into voluntary bankruptcy. According to filings with the New Hampshire Department of Health and Human Services, the clinic’s insurers declined to renew several contracts, citing “non‑compliance with updated quality‑standards protocols” that had been imposed by the state in 2023.
An audit of the clinic’s financial statements uncovered a pattern of aggressive billing practices, including the submission of false claims to third‑party payers. The audit also flagged the misuse of patient data, prompting the state’s privacy office to launch a probe. In an attempt to stave off legal penalties, the clinic’s owners filed for Chapter 11 bankruptcy protection on December 15, 2024.
While the clinic had maintained a steady stream of revenue from pain‑management procedures, its failure to meet regulatory milestones, coupled with the COVID‑19‑induced surge in healthcare costs, created a perfect storm that ultimately led to its downfall.
The Receiver
In an effort to mitigate the impact on patients and creditors, the state appointed Crescent Management Group (CMG) as the financial receiver for the PRC. CMG, a Boston‑based firm that specializes in restructuring distressed healthcare assets, will take over management of the clinic’s operations, negotiate with insurers, and oversee the sale of the clinic’s real‑estate holdings.
CMG’s chief restructuring officer, Maria Lopez, stated that “our role is to protect the interests of all stakeholders, particularly patients, by ensuring that the clinic’s services can continue to be delivered under new ownership as quickly as possible.” CMG will also work with the New Hampshire Department of Health and Human Services to audit the clinic’s medical records, ensuring that patient data is securely transferred to new providers.
The appointment of CMG follows a recommendation from a panel of bankruptcy judges who reviewed the case and determined that an independent receiver was the most efficient route to preserve the clinic’s value and deliver a fair resolution to patients and creditors alike.
Impact on Patients
Over 5,000 patients were actively receiving care at the time of the clinic’s bankruptcy filing. The clinic’s patient portal, which was integrated with the state’s health‑information exchange, has been temporarily shut down pending a transition plan. CMG has pledged to re‑establish a secure portal and to provide a list of alternative providers for each patient within the next 30 days.
The clinic’s closure has sparked a wave of anxiety among patients, many of whom rely on PRC for opioid‑sparing pain treatments that have proven to be a safer alternative to long‑term prescription medication. Local advocacy groups have urged the state to accelerate the transition of care to ensure that patients do not have to experience a gap in treatment.
“Patients who were dependent on PRC’s services are now facing uncertainty,” said Dr. Alan Greene, an anesthesiologist who has worked with PRC for years. “The state’s prompt action in appointing a receiver is a step in the right direction, but we need to see concrete, swift solutions.”
Legal and Regulatory Response
The New Hampshire Department of Health and Human Services is conducting a parallel investigation into PRC’s compliance record. The state has already issued a warning notice to the clinic’s owners for “unlawful billing” and for “failure to obtain necessary licensing updates.” The Department is coordinating with the Federal Bureau of Investigation and the Centers for Medicare & Medicaid Services (CMS) to assess whether PRC violated any federal statutes.
In addition, a state judge has ordered that all unpaid claims be paid by the clinic’s estate, subject to reimbursement from the state’s insurance funds. The receiver will be tasked with cataloguing all outstanding invoices and negotiating payment schedules with the state and private insurers.
What’s Next
CMG’s immediate priority is to secure a buyer for the clinic’s core assets—its outpatient facilities and the associated equipment—within the next 90 days. In the meantime, CMG will maintain the clinic’s operational infrastructure, ensuring that patients continue to receive routine care under the supervision of licensed providers.
The receiver’s office is also preparing a comprehensive audit of PRC’s financials, which will be made available to the public and to the court as part of the bankruptcy proceedings. This audit will provide transparency regarding the clinic’s liabilities, the extent of its financial mismanagement, and the potential for restitution to patients and creditors.
In the long term, the state’s health department plans to issue a report summarizing the findings of the investigation into PRC’s regulatory violations. The report will be used to refine the state’s oversight framework for pain‑management centers, with an emphasis on stricter data‑privacy controls and more rigorous compliance monitoring.
Conclusion
The appointment of Crescent Management Group as the financial receiver for the collapsed Pain Recovery Clinic marks a decisive moment in addressing the fallout from a significant healthcare failure. While patients and stakeholders will inevitably face disruption, the state’s swift action and the involvement of a specialized restructuring firm aim to preserve value, protect patient welfare, and ensure that the clinic’s assets are resolved in a manner that is equitable to all parties.
As the process unfolds, local residents and patients are encouraged to stay informed by monitoring updates from the New Hampshire Department of Health and Human Services and the receiver’s office. The state’s overarching goal remains clear: to safeguard patient care while upholding the integrity of the healthcare system in New Hampshire.
Read the Full New Hampshire Union Leader Article at:
[ https://www.unionleader.com/news/stigma/receiver-named-to-take-over-collapsed-pain-recovery-clinic-business/article_dffe7660-5ff7-4a1a-82e9-4ef55fc083eb.html ]
