Envision Healthcare, which is backed by private equity firm KKR & Co and provides outsourced emergency department services to hospitals, on Wednesday received U.S. bankruptcy court approval to split into two companies and cut over $7 billion in debt, Reuters reported. Bankruptcy Judge Christopher Lopez approved Envision's restructuring at a court hearing in Houston. Lopez commended Envision's bankruptcy lawyers for putting together an "incredibly complex" financial transaction while minimizing disruption to patients needing emergency care and the more than 20,000 doctors employed by Envision. "At the end of the day, this is going to remain a viable business, and those people have not been forgotten," Judge Lopez said. The bankruptcy restructuring will split Envision Healthcare into two separate companies, Envision Physician Services (EVPS) and AMSURG. EVPS will focus on providing doctors to hospital emergency rooms, intensive care units and birthing suites, while AMSURG will operate outpatient surgery centers specializing in gastroenterology, ophthalmology and orthopedic care.
