NES Health filed for bankruptcy Feb. 21 in the U.S. Bankruptcy Court for the Southern District of Illinois, with estimated assets between $1 million and $10 million and liabilities ranging from $10 million to $50 million, according to court documents obtained by Becker’s. The company, founded by Allan Rappaport, MD, a California-based radiation oncologist, listed hundreds of creditors, including hospitals and contract physicians.
The filing follows months of instability at the company. In November, NES Health informed physicians of plans to wind down operations due to financial difficulties, stating it had run out of cash and could not provide malpractice tail coverage.
Financial troubles at NES led to physician pay issues at around 30 hospitals that contract with the company, including Seton Medical Center in Daly City, Calif., where ED physicians went without pay for more than two months.
The bankruptcy filing includes more than 30 affiliated entities. Under the Chapter 7 filing, the court will oversee the sale of any remaining assets to pay off debts.
Becker’s has reached out to NES Health and will update this report if more information becomes available.