Envision Healthcare Announces Closing of Rural/Metro Acquisition
GREENWOOD VILLAGE, CO (October 28, 2015) – (BUSINESS WIRE) Envision Healthcare Holdings, Inc. (Envision) (NYSE: EVHC) announced that it has completed the previously announced acquisition of Rural/Metro Corporation (Rural/Metro) through Envision’s medical transportation segment, American Medical Response (AMR). Rural/Metro's operations generate annual revenue of approximately $590 million, and Envision expects to realize efficiencies of $25 to $28 million through 2017 from the integration.
"The addition of Rural/Metro allows us to more rapidly expand Envision’s mobile integrated healthcare delivery offering," said William A. Sanger, chairman, president and chief executive officer of Envision. "We are focused on working with our healthcare partners to build a more sustainable model that is centered on patient needs, with paramedics and EMTs playing an important role."
AMR consistently delivers innovative, high-performance healthcare services and superior patient care and the addition of Rural/Metro will enhance those abilities.
"As a former Rural/Metro employee, this feels like a bit of a homecoming for me," said Edward Van Horne, AMR president and chief executive officer. "I am excited to start working with our new team members to bring enhanced offerings to our community partners as we build synergies and expand capabilities – particularly in mobile integrated healthcare. The population health-centric models at Envision will also allow our team members additional opportunities to grow across AMR as well as at Evolution Health and EmCare."
The acquisition was funded through committed financing led by Barclays and Goldman, Sachs & Co.
About Envision Healthcare Holdings, Inc.
Envision Healthcare Holdings, Inc., offers an array of physician-led healthcare-related services to consumers, hospitals, healthcare systems, health plans and local, state and national government entities. The organization provides care across a broad patient continuum via American Medical Response, Inc. (AMR), EmCare Holdings, Inc. (EmCare) and Evolution Health, LLC (Evolution Health). AMR provides community-based medical transportation services, including emergency (‘911’), non-emergency, managed transportation, air ambulance and disaster response. EmCare’s integrated facility-based physician services include emergency, anesthesiology, hospitalist/inpatient care, radiology, tele-radiology and surgery. Evolution Health’s innovative and comprehensive care coordination solutions result in improved patient care delivery across a number of healthcare settings. Envision Healthcare is headquartered in Greenwood Village, Colorado. For additional information, visit www.evhc.net.
Certain statements herein may be deemed to be "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995 including, but not limited to, statements relating to our performance, objectives, plans and strategies, and all statements that address events that we anticipate will occur in the future. Any forward-looking statements herein are made as of the date hereof, and Envision undertakes no duty to update any such statements. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results to differ materially from forward-looking statements are described in Envision’s filings with the U.S. Securities and Exchange Commission from time to time. Among the factors that could cause future results to differ materially are: decreases in our revenue and profit margin under our fee-for-service contracts; the loss of existing contracts; failure to accurately assess costs under new contracts; difficulties in our ability to recruit and retain qualified physicians and other healthcare professionals; failure to implement some or all of our business strategies; lawsuits for which we are not fully reserved; the adequacy of our insurance coverage and insurance reserves; risks related to our integration of the Rural/Metro acquisition; the high level of competition in the markets we serve; the cost of capital expenditures; the loss of members of senior management; our ability to maintain or implement complex information systems; disruptions in disaster recovery systems, management continuity planning, or information systems; our ability to adequately protect our intellectual property rights; challenges by tax authorities on our treatment of certain physicians as independent contractors; the impact of labor union representation; fluctuations in results due to our national contract with FEMA; potential penalties or changes to our operations, including our ability to collect accounts receivable; the impact of changes in the healthcare industry; our ability to timely enroll our providers in the Medicare program; our ability to comply with future changes in government regulation; the outcome of government investigations; our ability to comply with the terms of our settlement agreements with the government; and our ability to generate cash flow to service our debt; and the factors discussed in "Risk Factors" in the Company’s Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q.
Envision Healthcare Holdings, Inc.
Bob Kneeley, 303-495-1245
VP, Investor Relations
Ron Cunningham, 303-495-1213
National Communications Director
Rural/Metro Corporation to Merge with Envision Healthcare Holdings, Inc. (NYSE: EVHC) Subsidiary American Medical Response
SCOTTSDALE, AZ (July 30, 2015) – Rural/Metro Corporation (Rural/Metro) and Envision Healthcare (EVHC: NYSE) (Envision) subsidiary American Medical Response (AMR) have entered into a definitive merger agreement expanding the breadth of service offerings for the communities and facilities served by each of these well-known healthcare brands. The merger agreement includes all of Rural/Metro’s Emergency Medical Services, Fire Services and other business operations.
The U.S. Healthcare industry is rapidly changing and this merger combines two diverse companies with distinct product offerings and geographic footprints that complement one another to create value for the communities they serve. This merger will accelerate the business transformation that Rural/Metro has been undergoing, and AMR and Envision have a strong record as innovative industry leaders in outsourced healthcare service markets.
Scott Bartos, the CEO of Rural/Metro, said, "We have spent the past several years fine-tuning our operations and enhancing the services we provide to our patients and community partners. Envision’s mobile integrated healthcare strategy will allow us to provide even greater value to those constituents while creating new opportunities for our team members. Combining with AMR and aligning with Envision Healthcare will enable us to be active contributors to solutions that are shaping the future of healthcare."
With the combined resources, expertise, and investment from both companies, the merged company will be well-suited to provide new and enhanced services beyond traditional medical transports to include community para-medicine, technology solutions and other related services that improve patient outcomes while appropriately managing costs. The combined organizations will be able to share technologies and access patient data for pre- and post-hospital clinical outcomes, thus allowing for the delivery of new care solutions for our customers.
"The continued progression of healthcare reform across the country is driving new models for both service delivery and reimbursement," said Sven Johnson, Chief Strategy Officer for Rural/Metro. "We have been strategically expanding our service offerings over the last few years to fill service gaps that have been created by healthcare market changes. We are excited by the opportunities that this merger provides to accelerate the transformation of our business model and the expansion of service offerings to our communities."
The proposed merger agreement is subject to expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and fulfillment of certain other customary conditions to closing. Pending such approvals and fulfillment of other conditions, the Companies currently anticipate closing the transaction in the fourth quarter of 2015.
Rural/Metro provides emergency medical transportation, non-emergency general medical transportation, fire protection services, and other emergency-related services to private and commercial enterprises. Rural/Metro employs over 7,500 people and answers 1.5 million calls for service yearly. For more information, visit www.ruralmetro.com.
About Envision Healthcare
Envision Healthcare Holdings, Inc., and its more than 35,000 employees and affiliated clinicians, offers an array of healthcare related services to consumers, hospitals, healthcare systems, health plans and local, state and national government entities. Through Envision Healthcare Corporation, the Company operates American Medical Response, Inc. (AMR), EmCare Holdings, Inc. (EmCare) and Evolution Health, LLC (Evolution Health). AMR is a provider and manager of community-based medical transportation services, including emergency ('911'), non-emergency, managed transportation, fixed-wing air ambulance and disaster response. EmCare is a provider of integrated facility-based physician services, including emergency, anesthesiology, hospitalist/inpatient care, radiology, tele-radiology and surgery. Evolution Health provides comprehensive care to patients across various settings, many of whom suffer from advanced illnesses and chronic diseases. Envision is headquartered in Greenwood Village, Colorado. For more information, visit www.evhc.net.