Envision loses CEO while finishing bankruptcy proceedings

In an eventful Wednesday for Nashville company Envision Healthcare, a bankruptcy court confirmed its reorganization plans and news broke that the company's CEO and president would be leaving the company.

Jim Rechtin, who led Envision since 2020, will serve as president and chief operating officer at Louisville-based health insurance company Humana, Inc. starting in January 2024, according to a press release from Humana. In the second half of 2024, Rechtin will become the company's CEO.

During a Wednesday hearing, the U.S. Bankruptcy Court for the Southern District of Texas approved repayment plans and eliminated 70 percent of Envision's debts, according to a press release. Envision filed for bankruptcy with $7.76 billion in debt in May — a huge loss for its private equity backer, KKR. The company cited pandemic staffing issues and declines in patient volumes as reasons for the filing. As part of the restructuring agreement, Envision Physician Services and its ambulatory surgery company, AmSurg, became two separate companies.

In July, the company hit roadblocks in its first attempt at restructuring plans, with creditors saying the plans had "fatal flaws." According to the release, the company anticipates completing bankruptcy proceedings by the end of this month.

"I am pleased to have reached an agreement with our key stakeholders and look forward to emerging from Chapter 11 in the coming weeks," said Rechtin. "The confirmed plans allow Envision to emerge from the process in a strong position to navigate the current healthcare environment and take advantage of future opportunities to grow while continuing to deliver high quality care to patients when they need it most."

In an emailed statement on Rechtin's departure, the company wrote: "Envision wishes Jim all the best in his new role. As we complete our restructuring and prepare to emerge in a position to grow, the board thanks Jim for his leadership. Envision's board will work closely with Jim to ensure a seamless transition to a new executive leader."