For-profit hospital giant HCA is reportedly teaming with private equity firm KKR & Co. to make an offer on physician services company Envision Healthcare, with HCA acquiring Envision’s ambulatory surgery unit.
Reuters reports HCA’s proposal would essentially reverse Envision’s 2016 merger with AmSurg. The rest of the $5.1 billion Envision would be taken over by KKR. Its competition for the Envision assets include a consortium of rival private equity forms Carlyle Group and TPG Global.
Envision said late in 2017 it was reviewing “strategic alternatives” after a disappointing earnings report attributed to a slow growth in patient demand for its services. UnitedHealth Group looked to be the likeliest buyer of the surgery unit, but the healthcare giant called off the bid after Envision sued its health insurance arm, UnitedHealthcare, over allegedly lowering payments “unilaterally” and refusing to include newly acquired Envision providers to its network.
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.