Physician staffing company Envision Healthcare has entered a transition agreement with Radiology Partners as it moves to exit the imaging business.
Radiology Partners would take over operations at an estimated 95 Envision imaging sites and onboard up to 400 radiologists. A specific timeline was not disclosed, but the transition is expected to occur throughout the rest of the year, according to a Wednesday news release.
Related: Envision Healthcare to cut 120 employees
The two private-equity backed companies did not immediately respond to a request for comment.
It's been a challenging few years for Envision Healthcare. The firm was purchased by private equity group KKR & Co. in 2018. The company filed for Chapter 11 bankruptcy in May 2023, but emerged from bankruptcy in November of that year.
Last July, the company announced plans to exit California, avoiding a lawsuit filed by the American Academy of Emergency Medicine which alleged that the companies private-equity led business model violated the state's corporate practice of medicine laws. A spokesperson for Envision said at the time the lawsuit was not a factor for the exit.
More recently, Envision has experienced leadership changes, with its chief financial officer and chief information officer departing in January. Earlier this month, the company announced plans to cut 120 employees at several of its subsidiaries following the end of a contract with San Antonio-based Baptist Health System.
