The American Academy of Emergency Medicine Physician Group plans to continue its federal suit against Envision Healthcare despite the company filing for bankruptcy, KFF Health News reported May 12.
Here are four things ASCs need to know:
1. The group sued Envision in December 2021, claiming the healthcare services company violated state law by taking over emergency department operations at Placentia-Linda Hospital in Placentia, Calif.
2. The suit alleges Envision uses shell business structures to retain de facto ownership of emergency room staffing groups.
3. The group has said a victory in the suit, which asks the court to declare these structures illegal, would lead to the prohibition of the practice across California in emergency rooms, anesthesiology and hospital medicine.
4. “While we cannot specifically comment on any ongoing litigation, Envision follows an operating structure that is common across the healthcare sector and widely used by nonprofit, privately-held and public groups as well as hospitals and insurers. Industry-wide legal challenges to that structure have proved meritless," Envision said in a statement shared with Becker's. "Envision is compliant with state laws and operates with high ethical standards that put patients' health and safety first.”