ED physicians won't drop suit against Envision

A group of emergency medicine physicians is planning to continue a federal lawsuit against Envision Healthcare, even as the company files for bankruptcy, KFF Health News reported May 12.

The American Academy of Emergency Medicine Physician Group sued Evision in December 2021, claiming the private equity-backed physician services company is violating a California law that bans corporations from practicing medicine. 

"I anticipate that we would ask the bankruptcy judge to let our case proceed," David Millstein, an attorney representing the Milwaukee-based physician group, told KFF before Envision officially filed for Chapter 11 bankruptcy May 15. "Among other things, Envision's practices violate the law, are continuing, and need to be addressed."

The emergency medicine physicians' lawsuit does not ask for monetary damages. Instead, the plaintiffs are seeking a court to rule that Envision's alleged use of shell business structures to retain de facto ownership of ED staffing groups is illegal. The trial was slated to start in January 2024, though that date has been delayed. 

Envision declined KFF's request for comment on the case. 

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