Envision Healthcare and AmSurg in advanced merger talks

Envision Healthcare Holdings Inc and AmSurg Corp, two of the largest outsourced physician services providers in the US are in advanced merger talks, The Wall Street Journal yesterday reported, citing people familiar with the matter.

A successful deal would see a company with a market cap of more than $9 billion and sales of $8 billion.

It isn't clear how the transaction would be structured, but a deal could be announced as early as next week, the report said.

Envision, formerly CDRT Holding Corporation, provides physician services like emergency care, anesthesiology, surgery, and ambulance and other medical-transportation services.

The Colorado-based company operates in two segments - EmCare Holdings, Inc.and American Medical Response, Inc.

Tennessee-based AmSurg provides outsourced physician services to hospitals and others. It is also a big player in so-called ambulatory surgery, with more than 245 facilities performing procedures that don't require an overnight stay.

Envision reported revenue of $5.4 billion and net income of about $150 million last year, while Amsurg generated revenues of $2.6 billion and net earnings of just over $150 million.