Here’s one of those groups that just went bankrupt (read that as “equity is wiped out and now the bondholders own the company”). PE loaded it up with debt, then the price of labor rose during covid, then it had disputes with insurers, and then as rates rose, it couldn’t pay the bills anymore.
Excerpt - "The failure of Envision illustrates the risks of layering debt onto a business in a rapidly changing industry. The company went from generating more than $1 billion in earnings before interest, taxes, depreciation and amortization in the year ended September 2020 to less than $250 million two years later, according to people familiar with the matter.
Other private-equity backed physician-staffing companies, which help hospitals staff emergency rooms and other departments, have also suffered. Bonds due in 2025 for TeamHealth, which Blackstone bought for $3 billion in 2017, are trading at 51 cents on the dollar, according to MarketAxess."