Skylight Health Group
The business, the turning points, and the decisions behind them.
01 / WHAT IT BUILT
What the company did
Skylight Health Group was a Toronto-based healthcare services and technology company (TSXV: SLHG / OTCQX: SLHGF), co-founded by CEO Prad Sekar. It operated a US multi-state primary care network of clinics offering primary care, sub-specialty, allied health and laboratory/diagnostic testing, aiming to shift small independent practices from fee-for-service to value-based care through proprietary technology, data analytics and infrastructure. Its core business was in Florida, including fully capitated Medicare Advantage risk contracts with 2,400+ lives after acquiring NeighborMD in May 2022.
02 / Skylight Health Group FAILURE REASONS
Failure reasons
Skylight collapsed under debt it could not service: by mid-2023 it owed over US$11 million to secured lender Families-Backing-Families Credit Fund and over US$4 million to Walleye, with its going-concern status dependent on positive cash flows it could not generate. It shed loss-making operations (closing its Colorado clinics in February 2023), could not file its 2022 audit, and after an extensive review found no executable transaction that would let it continue. Lenders foreclosed on its US assets in July 2023, leaving it with no material operations.
03 / EVENT HISTORY
Events in the structured record
- Expansion and debt
Skylight acquires NeighborMD (May 2022), entering fully capitated Medicare Advantage risk contracts in Florida, and secures a US$20 million debt facility with FLC.
- Collapse
In February 2023 Skylight closes its Colorado clinics to preserve cash; in May it delays its 2022 audit filing amid a going-concern warning. On July 19, 2023, secured lenders foreclose on its US operations (FLC owed >US$11M, Walleye >US$4M) and the company winds down remaining US operations. By August 2023 it has no remaining material operations and plans to dissolve its US subsidiaries.
- Insolvency proceedings
Deloitte, as trustee, holds the first meeting of creditors in May 2024, with Skylight's remaining bank funds (US$7,162.13) transferred to the trustee.
04 / CONTEMPORARY REBUILD ASSESSMENT
Difficulty of rebuilding this project today
Material for this section is being gathered and checked. It will appear here once ready.
Overall assessment: Not completed
05 / CAUSAL CHAIN
How the factors connect
- 01
Skylight drew down US$10 million of a US$20 million debt facility with FLC in 2022.
- 02
By July 2023 it owed over US$11 million to FLC and over US$4 million to Walleye; lenders foreclosed on US assets.
- 03
No reliable company-level loss figure with subject/period/basis was disclosed; the amounts owed are liabilities, not a loss.