Envision Says Bankruptcy Blocks Corporate Medical Practice Suit

Envision Healthcare Corp.'s bankruptcy protections should shield the KKR & Co.-owned medical staffing company from being forced to litigate claims that it violates California’s ban on the corporate practice of medicine, it argued in a court filing.

Envision’s statement came in a Tuesday filing urging the US Bankruptcy Court for the Southern District of Texas to reject the American Academy of Emergency Medicine Physician Group Inc.'s request to pursue the lawsuit. Envision argued that it’s squarely protected in Chapter 11 against such litigation.

“The debtors still need the ‘breathing room’ the automatic stay affords, as they are hardly one month ...