Envision Healthcare on Monday announced that it had filed for bankruptcy protection, five years after it was bought for about $10 billion by private equity firm KKR.
The Wall Street Journal reported last week that a bankruptcy filing was looming for the locally based physician staffing firm, noting that the bankruptcy would represent “one of the biggest losses ever” for KKR.
According to a release, Envision “will continue to operate as usual throughout the restructuring process.” AmSurg, which merged with Envision in a multibillion-dollar deal in 2016, will operate as a separate business.
“Envision’s teams play a critical role in the functioning of the U.S. health care system,” CEO Jim Rechtin said in the release. “We are grateful to the Envision clinicians, physician partners and clinical support teammates for their continued commitment to caring for patients when they need it most.”
The company blamed a series of events for the bankruptcy, including a decline in patient volumes during the early months of the COVID-19 pandemic, disputes with insurers and a “national clinician shortage and rising inflation.”
The bankruptcy petition was filed in the Southern District of Texas. Envision’s legal adviser is Kirkland & Ellis, while PJT Partners and Alvarez & Marsal are also advising the company on financial matters.