American Physician Partners, a medical staffing company based in Brentwood, Tenn., is closing and planning to transition its hospital contracts, according to Bloomberg.
APP was founded in 2015 and provided emergency medicine and hospital medicine management services to more than 150 hospitals and health systems organizations in 18 states, according to its website. It is a portfolio company of Brown Brothers Harriman Capital Partners.
"Due to our ongoing financial challenges and despite our best efforts, American Physician Partners will begin transitioning service of its hospital and system partners as of July 31, 2023," a company representative said in a statement to Bloomberg.
The news makes APP the latest physician staffing company to face distress following the 2022 No Surprises Act, which established new federal protections against surprise bills for emergency services and out-of-network care. In May, Envision Healthcare filed for Chapter 11 bankruptcy, citing implementation of the No Surprises Act as a factor for its poor financial position.
In late 2021, S&P Global Ratings downgraded APP Holdco — the parent of American Physician Partners — to CCC- after the company pulled its $520 million term loan deal. At the time, S&P said the downgrade reflected the view "that near-term default risk is high" with about $472 million in debt due in one week.