American Physician Partners' descent into bankruptcy was expedited in part by the "problematic" implementation of the No Surprises Act, its chief restructuring officer said in a Sept. 19 court filing.
The Brentwood, Tenn.-based medical staffing company announced Sept. 18 that it filed for Chapter 11 bankruptcy protection as it began winding down its business.
Chief Restructuring Officer John DiDonato said in the filing that the regulatory implementation of the No Surprises Act effectively shifted the balance of power in payment disputes too far in favor of payers and "enabled them to significantly delay and unilaterally reduce or deny payments."
He said that only a small portion of the claims submitted through the independent dispute resolution process had been resolved. Of those that were resolved, many remain unpaid by the insurers.
APP announced its closure in July. By the end of the month, the company transitioned its approximately 150 hospital and health system clients to other emergency medicine staffing firms or insourced services within the organizations.
The company listed assets of as much as $500 million and liabilities of as much as $1 billion in its Chapter 11 petition. It plans to liquidate under court supervision.