The Supreme Court of the State of New York has granted a petition by the state's financial services regulator to liquidate Atlantis Health Plan Inc. due to its insolvency.
The Medicare provider's board in October 2012 unanimously consented to an order of liquidation if the New York state regulator concluded that Atlantis Health was insolvent at any point after Nov. 30, 2012, and failed to cure the matter within a designated period.
The New York State Department of Financial Services monitored the company for some time and Linda Lacewell, acting superintendent, has determined that the Atlantis Health Systems Inc. subsidiary was insolvent. Kiran Patel, the only shareholder of America's 1st Choice Group, the parent company of Atlantis Health Systems, acknowledged in a Dec. 17, 2018, email that Atlantis Health Plan was insolvent and could not cure itself.
Atlantis' most recent audited financial statement, which was for year-end 2016, showed that its reserves and other liabilities exceeded its assets by more than $1 million. Its unaudited statement for 2017 showed a very similar picture.
The acting superintendent was appointed as liquidator and will take control of and manage the properties of the insurer.