A U.S. Bankruptcy Court on Wednesday approved private equity-backed radiology provider Envision Healthcare’s reorganization plans, the same day the company’s CEO said he’s leaving to lead Humana.
The Nashville, TN-based multispecialty group voluntarily filed for Chapter 11 in May, seeking to cancel $5.6 billion in debt. Envision has been challenged in recent years by drops in patient volumes amid the COVID-19 pandemic, payment disputes with health insurers, clinician shortages and rising inflation, Radiology Business reports.
Under terms of the deal, Envision will eliminate 70% of its obligations accumulated prior to filing the bankruptcy petition.
“I am pleased to have reached an agreement with our key stakeholders and look forward to emerging from Chapter 11 in the coming weeks,” said CEO Jim Rechtin. “The confirmed plans allow Envision to emerge from the process in a strong position to navigate the current healthcare environment and take advantage of future opportunities to grow while continuing to deliver high-quality care to patients when they need it most.”
Envision employs more than 17,000 clinicians, primarily in emergency and hospitalist medicine, anesthesiology and neonatology. Read more.
