PhyAmerica Physician Group, Durham, N.C., became the second national healthcare provider in two days to seek bankruptcy protection citing the collapse of National Century Financial Enterprises, Dublin, Ohio. PhyAmerica, a physician practice management company specializing in emergency medicine, said it filed a Chapter 11 bankruptcy petition yesterday in U.S. Bankruptcy Court, Baltimore. The company included its subsidiaries ECS Holdings, PhyAmerica Government Services and Integrated Provider Networks in the filing. NCFE hasn't paid customers since before Oct. 25, when its bonds were downgraded. The company buys healthcare providers' accounts receivable and then pays them from bond proceeds. Last week it obtained an injunction preventing PhyAmerica and more than 60 other healthcare providers from seeking direct payment from insurers. Another of those providers, Tender Loving Health Care Services, a subsidiary of Med Diversified, Andover, Mass., filed for Chapter 11 late last week. -- by Mark Taylor
PhyAmerica seeks bankruptcy, blames finance firm
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.