Radiology provider Envision Healthcare has successfully exited from the bankruptcy process, Radiology Business reported. The Nashville, Tenn.-based multispecialty group first filed for chapter 11 in May, seeking to retool its troubled capital structure. Five months later, the restructuring process is complete, with Envision reducing its debts by more than 70%. Under terms of the agreement, Envision’s ambulatory surgery center chain, AmSurg, is spinning off as a separate company with its own distinct leadership team. Both have new equity owners and an optimistic outlook. Envision had previously said that it planned to exit bankruptcy in the coming weeks. The restructuring follows years of turmoil, including drops in patient volumes amid the COVID-19 pandemic, payment disputes with health insurers, clinician shortages and rising inflation. This will mark the largest loss ever for Envision’s former private-equity backers at KKR, which invested nearly $10 billion (including debt) as part of a highly leveraged buyout completed in 2018. Prior to the proceeding, Envision employed more than 17,000 clinicians, primarily in emergency and hospitalist medicine, anesthesiology and neonatology. Another 500 of its physicians practice in radiology, completing roughly 8 million reads last year.
