Morning Briefing
Summaries of health policy coverage from major news organizations
2 Major Physician Services Companies Are In Talks On A Merger
Envision Healthcare Holdings Inc. is in talks to merge with AmSurg Corp., a deal that would bring together two big providers of physician and other health-care services with a combined value of more than $9 billion. The companies are in advanced discussions, and a deal could be announced as early as next week, according to people familiar with the matter. It isn鈥檛 clear how the deal would be structured and, as always, it is possible the talks could break down before one is reached. (Mattioli and Cimilluca, 6/8)
Nashville-based AmSurg made about $1 billion of acquisitions last year, mostly buying practices of physicians who serve in hospitals in anesthesia, emergency medicine, radiology and neonatology. ... AmsSurg was largely an owner and operator of ambulatory surgery centers until it bought physician staffing giant Sheridan Healthcare in 2014 for more than $2 billion. Greenwood, Colo.-based Envision is a big player in physician staffing as well as ambulance services. (Barkholz, 6/8)
The merger would increase operating efficiency and profit margins for the two companies, the sources said, at a time when consolidation among health insurance companies and hospitals is placing downward pressure on costs throughout the healthcare sector. (O'Donnell and Roumelioti, 6/8)
