The Louisiana, United States offshore medical provider, RemoteMD LLC, has filed for bankruptcy in the US leaving companies here wondering how they will recover in excess of $100m for services that they were subcontracted to provide for oil and gas workers.
RemoteMD LLC filed for bankruptcy on the 18th of October last year and has asked the Eastern District of Louisiana Court to grant it Chapter 11 privileges to reorganize and keep its business alive. But without the existence of similar legislative privileges in Guyana, local creditors are unsure how they will be able to recoup their debts as they are equally unsure what assets RemoteMD LLC possesses in Guyana.
“One medical service provider is owed over $50M, another company nearly double that and there are a number of others…,” a source told the Sunday Stabroek. “As it is, it seems gloomy. We have been trying to contact them for months to discuss settling [their debts] and all to no avail…,” one creditor said. “I am impacted heavily. How this (company), a foreign company with little assets could have racked up all this debt is mind-boggling. Businesses would not have afforded those same privileges to a local company,” a source expressed.
The Sunday Stabroek attempted to reach out to RemoteMD CEO, Kathryn Steele, but calls to her mobile number went to voicemail. A message was left but up to press time there was no reply. This newspaper also tried contacting RemoteMD’s local offices in Kingston but all calls to their numbers went unanswered. The Louisiana office number takes you to a switchboard with a long directory list. However, no one answered any of the numbers and instead calls went to voicemail requesting that messages be left for whichever service was selected. Having exhausted trying on their own to get the company to pay its debts, local companies registered their complaints with the Local Content Secretariat but it is also unclear what the Secretariat can do since bonds or security are not required for foreign companies doing business in the oil and gas sector in Guyana.
At the height of the COVID-19 pandemic in 2021, RemoteMD had billed 15 oil services workers US$350 ($70,000) each for a rapid COVID test, far higher than what the local labs were charging and which raised questions again over the expense claims that ExxonMobil and its contractors will likely make as cost oil. An invoice seen by Stabroek News showed that RemoteMD submitted a bill to Gaico Construction on February 19 of 2021 for 15 rapid tests totaled US$5,250 (just over $1 million). When the company was contacted by Stabroek News, it had justified the cost then, even as it explained that by April of this year it was charging between US$65 ($13,000) and US$85($17,000) per test. In its justification of the US$350 charges, RemoteMD had explained then that it outsourced all lab services to local labs.
Most of the monies now owed are for the very services that were outsourced. This newspaper was unable to verify if RemoteMD was paid by the oil and gas contractors, and if it was, the question remains why those companies that provided the services were not paid.
The labs used for COVID-19 testing in 2021, according to a RemoteMD representative, were Eureka Labs and Sheriff Medical Services. “We pay the labs in Guyana just about US$50 to US$60 for each test. If we have to offshore, it is about US$50 to US$100,” the representative had explained then to Stabroek News, pointing out that while the charges may seem exorbitant when compared to local labs, the company has an agreement that their tests be expedited and thus have to pay for those services. His explanation raised questions about why COVID-19 testing required an overseas-based broker like RemoteMD and why ExxonMobil’s contractors were not going directly to local labs for testing.
A source told the Stabroek News that one of RemoteMD creditors, Eureka Medical, is preparing to take the company to court over the outstanding debt. “Eureka has begun filing court proceedings to see how the local court can help in recovering…,” the source stated.
In 2021, RemoteMD had announced that it was undertaking works in cooperation with the St. Joseph Mercy Hospital towards setting up a medical lab in Guyana. “RemoteMD proudly announces the formal opening of RemoteMD Services Guyana Inc. Like all of our other locations, our Georgetown Offices Specialize in Occupational Health, Industrial Medicine and Urgent Care. We are committed to excellence today and every day. For our Corporate Clients, Employees and Families we exist to protect YOU & YOUR most valuable asset, YOUR HUMAN RESOURCES. Personal Health Insurances are welcome for all of YOUR Urgent Care needs,” its Facebook platform announced in September of 2021. The project address was listed as Lot 125 Suite ‘A’ Barrack Street, Kingston, Georgetown, a short distance away from their Mercy Hospital’s Parade Street location.
It was, however, pointed out that the establishment of the lab would cut into the services available from local labs. While it said that it was submitting the proposal for the occupational health needs of Guyana Logistics and Services Incorporated and appreciative of the opportunity to do so, RemoteMD’s five-page project summary lacked details of what the company intended to do here, but focused more on its background, specifically, all the services the company offers and a history of its works and founder. “RemoteMD (RMD) and its family of companies employ a highly trained, dedicated staff delivering services internationally on all seven continents, across a broad range of medical, security and logistical disciplines and sectors. As such, MD is uniquely qualified to provide a fully integrated response to client’s needs. RemoteMD delivers its products and services according to client requirements and uses a dynamic, efficient approach to all operations that require an imaginative and responsive management style. ” the project summary stated.
The RemoteMD CEO had said her company had worked with ExxonMobil and its prime contractors in other countries around the world, and that the oil & gas industry has long set the highest standard for health and safety of any industry in the world, which is why “we train our doctors and nurses to adhere to those exacting standards and go above”.
