On February 21, 2025, the contract management group, NES Health Services, filed for Chapter 7 bankruptcy in the US Bankruptcy Court of the Southern District of Illinois, marking an end to the financially troubled company that had contracts with at least 35 hospitals from Alaska to Texas (Figure 1). It was the third bankruptcy of a contract management group in the last two years.
Both Envision and American Physician Partners (APP) filed for Chapter 11 in 2023. (In October 2023, Envision announced a reorganization that separated the company into two separate entities.)
By November 22, 2024, emergency physicians (EPs) who were contracted with NES Health found themselves without a job or pay after months of delaying tactics by the company. Robert McNamara, MD, chief executive officer of the American Academy of Emergency Medicine Physician Group and former president of AAEM, said he had seen a comparable situation when APP declared bankruptcy. “People were in a panic because they were not getting back pay,” he said. “They no longer had malpractice coverage, which meant their tail was not covered.” The malpractice “tail” means that the doctors have malpractice coverage if they are sued because of incidents in their prior job. NES Health described its decision on their now-inactive NES Health Wind Down FAQ site.
Author: Ruth SoRelle, MPH
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Last Updated: July 2, 2025