Medical staffing company American Physician Partners said it is planning to wind down its operations and transition its hospital contracts.
(Bloomberg) — Medical staffing company American Physician Partners said it is planning to wind down its operations and transition its hospital contracts.
The cash-strapped company failed to ink a deal with another hospital staffing firm SCP Health, contributing to its decision to shut down in the coming weeks, said a person with knowledge of the situation, who asked not to be identified because the talks are private.
“Due to our ongoing financial challenges and despite our best efforts, American Physician Partners will begin transitioning service of its hospital and system partners as of July 31, 2023,” a company representative said in a statement in response to request for comment.
Brown Brothers Harriman & Co., which jointly owns the company along with member physicians and management, didn’t respond to requests for comment.
American Physician Partners is the latest physician staffing company to falter following the No Surprises Act, a law that went into effect in 2022 and protects consumers from large, unexpected bills when they receive emergency services and out-of-network care.
Based in Brentwood, Tennessee, American Physician Partners provides emergency medicine and medicine management services to hospitals and healthcare systems. Envision Healthcare Corp., another medical staffing firm, filed for bankruptcy in May, citing factors including “negative financial consequences” from the implementation of the No Surprises Act.
American Physician Partners had loans due at the end of 2021, but received an extension from its lenders after a planned $520 million refinancing deal fell through amid investor concerns about the legislation, Bloomberg previously reported.
At the time, S&P Global Ratings downgraded the company to CCC-, citing high risk of near-term default or distressed deal.
(Updates to include details of financial challenges in second paragraph.)
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