Brentwood-based American Physician Partners told Bloomberg it will shut its doors at the end of July. It’s the second Tennessee company of its kind to announce major financial distress this year.
These staffing agencies supply emergency rooms with workers. WPLN found the companies often send less trained, less expensive staff — nurse practitioners, physician assistants — to work shifts usually filled by medical doctors. Critics argue this leaves patients vulnerable to inadequate care.
The companies are backed by private equity. Under that model, wealthy investors pool their money to buy businesses and make them more profitable — often by slashing costs. That’s a common business practice in several industries, and it’s starting to happen more in health care.
The staffing agencies have been struggling since Congress reformed surprise billing last year. When a patient goes to a facility that is in network with their insurance but are treated by a contractor who isn’t, it costs a lot. The No Surprises Act ensures patients don’t foot the bill. Instead, insurance companies and staffing agencies go into negotiations.
The other Tennessee agency, Envision filed for bankruptcy this spring. Company representatives said that law was a factor in its financial distress.
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