Tennessee-based American Physician Partners voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Delaware to complete the orderly wind down of its business affairs following the transition of its clinical operations.
APP’s management, advisors, and board have been focused on minimizing disruption for its hospital and health system clients, patients, physicians, clinicians, and employees while maximizing value for its creditors and other stakeholders. Effective July 31, the company had transitioned all its clients to other strategic emergency medicine companies or insourced with the respective hospitals or health systems. Through the transition, there was no interruption to patient care and APP satisfied or arranged for the satisfaction of significant obligations of the company.
APP said it filed for Chapter 11 “after careful consideration and in consultation with management, advisors, and the Board.”
Throughout this wind down process, the company said its priority has been to minimize disruption for APP’s hospital and health system partners and the communities they serve. APP’s management team has made an effort to focus on patient care above all else and advocate for the valued team serving its patients and supporting clinicians, while navigating financial challenges and difficult market conditions.
APP is filing customary “First Day Motions” with the court to facilitate a smooth transition into Chapter 11 and intends to uphold its commitments to its continuing employees. These motions, which the company said it believes will be approved in short order, include requests to continue to pay wages and honor benefits in the ordinary course.
The company is also seeking court approval to consensually use cash collateral to fund its orderly wind down during the Chapter 11 cases. The company intends to seek confirmation of a plan of liquidation by the court. Read more.
