(Bloomberg) -- Medical staffing company American Physician Partners LLC filed for bankruptcy protection to wind down its business after it ceased operations in July, citing economic headwinds brought by the pandemic and lost revenue from new regulation.

The company listed assets of as much as $500 million and liabilities of as much as $1 billion in its petition, filed Monday in Delaware. As of July 31, American Physician Partners had transitioned its clients to other emergency medicine companies, hospitals and health systems, according to a statement. It plans to liquidate under court supervision. 

American Physician Partners’ decision to fold came after it failed to reach a deal with another hospital staffing firm, SCP Health, Bloomberg previously reported. The company said in court papers that it wasn’t able to find a potential acquirer, equity investors or replacement lenders. The Brentwood, Tennessee-based firm was owned by Brown Brothers Harriman & Co., along with member physicians and management.

Physician staffing firms were hit hard by the pandemic as many patients delayed elective procedures and avoided emergency rooms over fears of catching Covid-19. The company received more than $30 million in relief funding, which it said helped offset lost revenue in 2020 and 2021. But as staffing shortages persisted, factors like rising labor costs and inflation continued to weigh down on the company’s revenue, according to a court filing Tuesday. 

The company also suffered in 2022 after the No Surprises Act went into effect. The law protects customers from large, unexpected bills when they receive care from providers not covered by their insurance, and the company said it left most of its payment disputes with insurers unresolved.

Before ceasing operations this summer, American Physician Partners held approximately 150 contracts with emergency departments and hospital systems mostly in the South and Midwest. The company, founded in 2015, suffered operating losses greater than $100 million from 2019 through last year, despite revenue growth that neared 50% across that time period, the court filing shows.

The company has dismissed almost all of its employees, which totaled more than 2,500, since July. It had acquired nine firms between 2016 and 2020, according to the court filing.

American Physician Partners’ demise follows the bankruptcy of another physician staffing firm, Envision Healthcare Corp., in May. Envision cited factors including “negative financial consequences” from the No Surprises Act in its Chapter 11 filing.  

The case is American Physician Partners LLC, 23-11469, US Bankruptcy Court for the District of Delaware (Delaware).

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