Envision, a private equity-backed clinician staffing firm that also manages ambulatory surgical centers and care after hospitalization, is expected to file Chapter 11 bankruptcy if reports from the Wall Street Journal prove true.
If Envision goes bankrupt, it could impact emergency departments, hospitalist services, anesthesia, radiology, and services for women and children.
While Envision did not make perfect business decisions over the past few years — it has received criticism for its out-of-network billing practices, for example — it will not be the only healthcare provider who could suffer this fate. In fact, if the growth and power of private payers like UnitedHealthcare, Cigna, and Aetna is unchecked by new government regulations, we could see a slew of care providers go bankrupt in the coming months.
Lawmakers and regulators need to protect patients, hospitals, and providers from this dramatic shift in power and influence.
Bankruptcy in Healthcare
Bankruptcy in healthcare is not new, and it accelerated during and after the COVID pandemic due to inflation costs and staffing challenges.
But Envision’s bankruptcy still could have significant ripple effects on the industry. And it is different.
While organizations may use bankruptcy to restructure their financial obligations, and can continue operations