NU Online News Service, July 31, 12:12 p.m. – PhyCor Inc., Nashville, Tenn., a physician practice management company, says it emerged from Chapter 11 bankruptcy reorganization proceedings Tuesday.
The U.S. Bankruptcy Court in New York approved PhyCor's reorganization plan July 19.
PhyCor tried to create a new era of medical practice in the mid-1990s, by acquiring large numbers of practices and negotiating aggressive contracts with managed-care companies that often paid a flat fee for each patient served.
PhyCor and many of its competitors ran into serious problems in the late 1990s, when managing the newly acquired practices, paying off the loans used to finance the acquisitions and negotiating profitable provider contracts proved to be more difficult than they had expected.
PhyCor filed for protection from creditors in January.
PhyCor, which is changing its name to Aveta Health Inc., notes that it still provides health risk management services for 630,000 people in California, Illinois, Tennessee and Kansas, and that it continues to provide health care services through owned and affiliated independent practice associations and physician hospital organizations.
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