Physician staffing firm NES Health filed for Chapter 7 bankruptcy on Feb. 21, according to court documents obtained by Becker’s.
NES announced plans to cease operations in November, citing financial challenges. Reports indicate that the company’s financial struggles left emergency department physicians at multiple hospitals unpaid for a period of time.
NES Health filed for bankruptcy 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. The company, founded by Allan Rappaport, MD, a California-based radiation oncologist, listed hundreds of creditors, including hospitals and contract physicians.
The bankruptcy filing includes more than 35 affiliated entities across multiple states. The debtors have requested joint administration of the cases, meaning all proceedings will be handled together under the lead case of NES America.
“As you are aware, in recent months, NES America has experienced financial difficulties,” the company said in a Nov. 22 email to physicians posted on Reddit. “NES does not have any funding or available cash. Consequently, NES will not be able to provide malpractice tail coverage…NES has made the difficult decision to wind down its operations and cease doing business. We deeply regret this situation”
NES Health’s closure follows the recent shutdown of two other physician staffing firms. In September 2023, American Physician Partners filed for Chapter 11 bankruptcy protection. By July, the company had transitioned all its clients to other firms or moved services in house with hospitals and health systems.
In May 2023, Envision Healthcare announced plans to file for Chapter 11 bankruptcy. By October, Envision’s former ASC arm, AmSurg, separated from the company and acquired all surgery centers previously owned by Envision. Envision emerged from restructuring in November 2023.
Becker’s has reached out to NES Health for comment and will update this article if more information becomes available.
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.