National medical group Envision Healthcare on May 15 filed for Chapter 11 bankruptcy in the Southern District of Texas.
The company, which is backed by global investment firm Kohlberg Kravis Roberts (KKR), has estimated assets of $1 billion and liabilities of $10 billion.
It has entered into a "restructuring support agreement" for its ambulatory surgery center unit, Amsurg, to cover debt of $7.7 billion. Amsurg will buy surgery centers held by Envision for $300 million, according to the firm.
The company attributed the filing to sharp decreases in patient volumes as the result of the COVID-19 pandemic, its exclusion from health insurer networks and inappropriate reimbursement for care provided, "flawed implementation of the No Surprises Act," and a national clinician shortage and rising inflation.
