Physician staffing firm NES Health is planning to shutter operations following financial challenges.
Here are 10 things to know:
1. The firm's recent financial difficulties have left emergency department physicians at multiple hospitals unpaid
2. "As you are aware, in recent months, NES America has experienced financial difficulties," the company said in a Nov. 22 email to physicians posted on Reddit. "NES does not have any funding or available cash. Consequently, NES will not be able to provide malpractice tail coverage…NES has made the difficult decision to wind down its operations and cease doing business. We deeply regret this situation"
3. According to a Nov. 26 report from MedPage Today, NES Health's CEO and chief medical office resigned earlier this month.
4. Approximately 30 hospitals nationwide, which rely on NES Health for emergency department staffing, have experienced payment issues affecting their physicians.
5. At Seton Medical Center in Daly City, Calif., emergency physicians had not received pay for over two months. Seton is pursuing legal action, alleging that NES withheld funds meant for physicians, Sarkis Vartanian, a hospital administrator, said in a statement to MedPage Today.
6. Payroll disruptions led Northwest Texas Healthcare System in Amarillo to temporarily close two freestanding emergency departments. These departments have remained closed as of Nov. 23, but the hospital has since secured a new contractor and is working to reopen the facilities, the hospital's CEO said in a memo sent to Becker's. .
7. NES Health's closure follows the recent shutdown of two other physician staffing firms. In September 2023, American Physician Partners voluntarily filed for Chapter 11 protection under the U.S. Bankruptcy Code. In July, the company transitioned all of its clients to other companies or insourced with the respective hospitals or health systems.
8. In May 2023, Envision announced its plans to file for Chapter 11 bankruptcy. In October, Envision announced that its former ASC arm AmSurg will split from the company. AmSurg has since purchased all surgery centers held by Envision.
9. Despite its financial troubles, NES Health has not filed for bankruptcy. The company was founded by Dr. Allan Rappaport, a California-based radiation oncologist.
10. Becker's has reached out to NES Health and will update the story should more information become available.