Envision Healthcare Corporation is a leading provider of physician-led services, post-acute care, and ambulatory surgery services. The company provides a range of healthcare-related services to consumers, hospitals, healthcare systems, health plans, and local, state, and national government entities
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Envision Healthcare, heavily impacted by the COVID-19 pandemic and the No Surprises Act, filed for Chapter 11 bankruptcy in May 2023 to restructure its debt and address operational challenges. Force 10 Partners, as financial advisor to the Official Committee of Unsecured Creditors, played a key role in identifying unencumbered assets and shaping a consensual reorganization plan. This plan, confirmed in October 2023, paved the way for Envision and AMSURG to operate as independent entities, each positioned for growth in today’s evolving healthcare landscape.
Envision Healthcare and its affiliates filed for Chapter 11 bankruptcy on May 15, 2023, in the Southern District of Texas as part of a strategy to address financial challenges and restructure the company’s debt. The company faced significant operational difficulties, primarily driven by the COVID-19 pandemic and the implementation of the No Surprises Act. These factors heavily impacted its emergency medicine and anesthesiology segments, leading to a substantial decline in patient visits and revenue.
Envision entered into a Restructuring Support Agreement (RSA) backed by a significant portion of its creditors. Under the confirmed Plans of Reorganization, Envision was able to eliminate a large portion of its prepetition-funded debt, positioning itself to emerge with a significantly deleveraged balance sheet. Force 10 served as the financial advisor to the Official Committee of Unsecured Creditors and, alongside committee legal counsel, successfully identified and valued unencumbered assets and investigated liability management transactions to assess reasonably equivalent value. This work was instrumental in shaping a consensual plan, ultimately confirmed in October 2023, under which Envision and AMSURG will operate as separate entities with distinct leadership and ownership groups following the reorganization. This separation is part of a broader strategy aimed at enabling each entity to focus on growth and better navigate today’s complex healthcare environment.
