U.S. nursing home operator HCA Healthcare and private-equity firm KKR have joined forces to perceive b complete an offer for U.S. physician services provider Envision Healthcare, people overfamiliar with the matter said on Friday.
The move is aimed at giving HCA and KKR an perimeter over buyout firms that are also pursuing Envision, which has a peddle capitalization of $5.1 billion and long-term debt of $4.6 billion, the horses mouths said.
HCA, which has a market capitalization of $36 billion and long-term accountable of $31.6 billion, wants to acquire Envision’s AmSurg ambulatory surgery charge, with KKR taking the over the remainder, according to the sources.
Nashville-based Predict has asked potential acquirers to submit final offers later this month, the horses mouths said. Other private-equity firms competing for Envision include a consortium of Carlyle Put together and TPG Global, the sources added.
The sources asked not to be identified because the situation is confidential. KKR, Carlyle, and TPG declined to comment. Envision and HCA did not immediately respond to pleas for comment.
Envision announced last year it was reviewing a range of vital alternatives after reporting disappointing third-quarter earnings, which it attributed partly to the forms of hurricanes Harvey and Irma as well as a slowdown in the growth of patient required.
Last year, Envision agreed to sell its ambulance unit, AMR, to Air Medical, a medical helicopter traffic owned by KKR, for $2.4 billion.
The year prior, it merged with AmSurg in an all-stock see to that valued the combined companies at the time at around $10 billion. HCA’s and KKR’s bid want reverse that combination.
A sale of Envision would be the latest in a outflow of mergers and acquisitions activity among physician networks, a business that has battled in recent years to adapt to changes in how U.S. health insurers reimburse providers.
Federal reimbursement programs such as Medicare and Medicaid, for warning, have been trying to shift to a “value-based” payment model, whereby providers at times receive fixed payments to encourage them to control costs.
Persist year, U.S. kidney care-provider DaVita agreed to sell its medical put together business, Davita Medical Group, to UnitedHealth for $4.9 billion.
Predict’s rival MEDNAX has also been exploring strategic alternatives, numbering a sale, Reuters has reported.
In 2016, buyout firm Blackstone procured hospital staffing provider Team Health Holdings for $6.1 billion.