Transaction to Expand Envision’s Radiology Physician Services
Nashville, Tenn. & Greenwood Village, Colo.--(BUSINESS WIRE)--Envision Healthcare Corporation (NYSE: EVHC) has entered into a definitive agreement to acquire Imaging Advantage LLC, a provider of comprehensive radiology services including hospital-based, outpatient and remote-reading services, in a transaction that will meaningfully expand Envision’s presence in radiology physician services across the country.
Imaging Advantage deploys an innovative and scalable cloud-based technology to optimize provider utilization and efficiency of more than 400 radiologists who provide services across a clinical network that includes more than 435 healthcare facilities.
“We believe the merger with Envision creates a valuable, integrated platform for radiologists and leverages our innovative radiology care model,” said Naseer Hashim, founder and Chief Executive Officer of Imaging Advantage. “We recognize the strategic value of being part of a company with Envision’s multi-specialty service offering, as well as the value a sole source solution brings to hospitals. The merger will enable us to more effectively preserve and advance the intrinsic and important role of providers in their local communities, while managing relationships with health systems and enhancing service levels for referring physicians.”
Upon completion of the transaction, Envision’s Physician Services segment will include more than 800 board-certified/board-eligible radiologists who serve more than 500 healthcare facilities and perform more 10 million studies annually.
“We are excited about our ability to attract leading radiology provider groups such as Imaging Advantage to our integrated physician services offering,” said Robert J. Coward, President of Envision’s Physician Services. “Radiology groups remain largely fragmented and there is increasing strategic value in integrating this specialty with our emergency medicine, hospital medicine, anesthesia and women’s and children’s specialties and subspecialties to create an increasingly compelling offering to health systems who are focusing on care coordination and outcomes.”
The transaction is expected to be completed during the second quarter of 2017, subject to customary conditions, including the expiration or early termination of the waiting period applicable to the transaction under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. No financial terms are being disclosed at this time.
About Envision Healthcare Corporation
Envision Healthcare Corporation is a leading provider of physician-led services, ambulatory surgery services, post-acute care and medical transportation. Physician-led services encompass providers at more than 780 hospitals in 45 states and the District of Columbia and include leadership positions in emergency department and hospitalist services, anesthesiology, radiology, and women’s and children’s services, as well as offerings in general surgery and office-based medicine. As a market leader in ambulatory surgical care, the company owns and operates 260 surgery centers and one surgical hospital in 35 states and the District of Columbia, with medical specialties ranging from gastroenterology to ophthalmology and orthopedics. Post-acute care is delivered through an array of clinical professionals and integrated technologies designed to contribute to efficient and effective population health management strategies. As a leader in healthcare transportation services, the Company operates in 38 states and the District of Columbia. In total, the Company offers a differentiated suite of clinical solutions, creating value for health systems, payors, providers and patients. For additional information, visit www.evhc.net
Certain statements and information in this communication may be deemed to be “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to the Company’s financial and operating objectives, plans and strategies, and all statements (other than statements of historical facts) that address activities, events or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future (including the completion of the transaction discussed above). These statements are often characterized by terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions, and are based on assumptions and assessments made by the Company’s management in light of their experience and their perception of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate. Any forward-looking statements in this communication are made as of the date hereof, and the Company undertakes no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance. Whether actual results will conform to expectations and predictions is subject to known and unknown risks and uncertainties, including: (i) risks and uncertainties discussed in the reports and other documents that the Company files with the Securities and Exchange Commission; (ii) general economic, market, or business conditions; (iii) the impact of legislative or regulatory changes, such as changes to the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010; (iv) changes in governmental reimbursement programs; (v) decreases in revenue and profit margin under fee-for-service contracts due to changes in volume, payor mix and reimbursement rates; (vi) the loss of existing contracts; (vii) risks associated with the ability to successfully integrate the Company’s operations and employees following the merger of AmSurg Corp. and Envision Healthcare Holdings, Inc. on December 1, 2016 (the “Merger”); (viii) the ability to realize anticipated benefits and synergies of the Merger; (ix) the potential impact of the Merger on the Company’s relationships, including with employees, customers and competitors; and (x) other circumstances beyond the Company’s control.
Envision Healthcare Corporation
Bob Kneeley, 303-495-1245
Vice President, Investor Relations