Physician staffing firm APP has ceased its operations on July 31st, following financial issues linked to the No Surprises Act (NSA). The healthcare industry is experiencing significant market distortions, with declining physician reimbursements due to factors such as the NSA, government, and private payer actions, alongside inflationary pressures, and rising interest rates.
The dissolution of APP prompts discussions about physician employment preferences and the control physicians have within these firms. APP is backed by a private equity firm, and critics argue that private equity's influence on firms is a major factor in their financial troubles. However, several experts emphasize that the challenges affecting the healthcare industry are similar regardless of private equity involvement, urging a focus on fundamental industry drivers rather than ownership models.
The closure of APP has raised concerns among professional medical organizations about its impact on emergency physicians and the broader healthcare community.
For more information on this story, we encourage you to visit Med Page Today’s article on this event.