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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowAn Indianapolis-based physician staffing firm has filed for bankruptcy reorganization, citing heavy debt, cost overruns and insurance reimbursement shortfalls.
OPYS Holdings Inc., which provides doctors to rural hospitals to staff their emergency rooms and other critical areas, filed under Chapter 11 of the bankruptcy code in U.S. Bankruptcy Court in Indianapolis on Tuesday.
The company listed liabilities of $18.5 million and assets of just $19,701. In the filing, it said it has “been unable to verify the validity and amounts” of many creditors’ claims and marked many as disputed.
Dr. Andre Creese, the president, CEO and owner, said the 10-year-old company plans to remain “fully operational, without any disruption or changes” with its physicians and facilities.
“Regrettably, we experienced significant insurance reimbursement shortfalls, cost overruns, and given the surprise billing legislation, accumulated debt owed by subsidiaries of OPYS,” he wrote in an email to IBJ.
He said the company often billed insurance companies directly for the physician professional fees at rural hospitals but received less than expected for the medical procedures provided.
It’s just the latest bankruptcy or corporate reorganization for physician-staffing companies since Congress passed the so-called “No Surprises Act” in 2020 to protect patients from excessive surprise medical bills. The law went into effect last year.
In June, medical staffing company American Physician Partners based in Brentwood, Tennessee, said it was planning to wind down its operations and transition its hospital contracts, according to Bloomberg. Envision Healthcare Corp., another medical staffing firm, filed for bankruptcy in May, citing factors including “negative financial consequences” from the implementation of the No Surprises Act, Bloomberg reported.
Creese said OPYS (which stands for Our Physicians, Your Success) plans to realign its administrative office workforce but did not give details. The private company had 17 employees and 75 physicians under contract as of last December.
The company’s largest unsecured creditors include LQD Business Finance LLC of Chicago ($4.9 million), PIRS Capital LLC of Miami Beach ($645,339), CHG Companies of Dallas ($277,314) and Dr. Joseph Galdun of Indianapolis ($185,000).
OPYS also owes the Internal Revenue Service at least $173,145 for corporate income taxes dating back to 2014.
Last year, the company had gross income of $7.3 million (including from subsidiaries), down from $11.7 million in 2021.
The company listed 10 related businesses that it owns, including OPYS Physician Services LLC, OPYS Locums LLC, Pacific Telemedicine Network LLC, Empire Physician Services LLC and Contracted Provider Solutions LLC.
It also listed 23 related businesses that are now defunct, including Telepsychiatry of Indiana LLC, Regional Physicians LLC and Surgical Hospitalists LLC.
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Surprise billing should have never been allowed in the first place and had to be ended . Any company that exploited that abusive practice deserves to go bankrupt .
The man has $19 million in liabilities, less than $20K in cash, and claims he is getting inadequate reimbursement from the insurance companies but will continue business as usual with no disruptions. He should be a comedian!