Here’s what you should know:
1. After its acquisition of AmSurg, physician services account for 81 percent of Envision’s core revenues.
2. Envision recently announced it would divest its American Medical Response business to KKR & Co. in a $2.4 billion transaction.
3. Nasdaq reports Envision is “optimistic about the physician services market which is witnessing consolidation.” Nasdaq attributed several factors to Envision’s optimism including:
- Clinical integration
- Value-based care
- A lack of scaled physician practices and supply of physicians
- The Medicare Access and CHIP Reauthorization Act of 2015
- Increasing regulations
4. Nasdaq said Envision is taking an inorganic approach to growth. The company acquired nine physician practices in the first half of 2016 for $440.8 million.
5. The only potential drawback to this approach is the high associated debt. Envision announced plans to use a portion of the funds from the divestiture to reduce debt.
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