Physician staffing firm Envision Healthcare is planning to file for Chapter 11 bankruptcy, according to a report from The Wall Street Journal.
Sources told the newspaper that the company now has about $7 billion in outstanding debt and has faced labor challenges along with a lengthy, costly legal spat with health insurance giant UnitedHealthcare. In addition, a core element of the provider’s model took a major hit in reforms to surprise medical billing.
The WSJ reported that Envision failed to report its financials before March 31 and did not make an April payment on its interest, which kick-started a 30-day window after which its investors could force the provider into bankruptcy.