December 6, 2022
Manitoba Clinic Medical Corporation ("Medco"), which operates the largest private healthcare clinic in Manitoba, and The Manitoba Clinic Holding Co. Ltd., which owns the real property where the clinic operates, obtained an initial order under the CCAA on November 30. Medco plays a significant role in Manitoba’s healthcare system, generating 90% of its revenue by billing the Manitoba Department of Health for services performed by physicians who enter into service agreements with Medco. In 2010, plans were made to construct a state of the art, ten-floor facility and to add two floors to the existing parkade, which was to be done in partnership with the CancerCare Manitoba Foundation. However, the second phase of construction, which was the construction of a new facility for CancerCare, did not proceed, and the companies were left with the large parkade. 52,000 square feet of space in the facility also remains unoccupied. In addition, in the past year, the companies have suffered losses due to, among other things, recent physician departures and an inability to recruit a full complement of physicians, which has negatively affected the companies' ability to generate income through invoicing Manitoba Health and recovering on overhead. A&M was appointed monitor. Counsel is Taylor McCaffrey for the companies, McDougall Gauley for the monitor and MLT Aikins for CIBC.
By Dina Milivojevic