Envision is no longer operating in California after decreasing its footprint in the state over the last several years.
Envision said it "continuously assesses" states where it operates and decided to exit management services and administrative operations.
Previously, the American Academy of Emergency Medicine filed a lawsuit in December 2021 against Envision after the company took over an emergency department contract at Placentia Linda Hospital in California. AAEM argued Envision's business model violated laws against lay ownership of medical practices. At the time, Envision was owned by private equity firm KKR. Envision now has multiple investors.
The two sides reached a settlement recently, according to a July 24 news release from AAEM. Envision denies the AAEM's allegations and said the company plans to continue focusing on patient care.
"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," an Envision spokesperson said in a statement shared with Becker's. "Industry-wide legal challenges to that structure have proved meritless. Envision operates with high ethical standards that put patients' health and safety first."