GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Envision Healthcare Holdings, Inc. (Envision) (NYSE: EVHC) announces a definitive agreement to acquire Questcare Medical Services, P.A. (Questcare) based in Dallas, TX, whose more than 800 clinical providers staff more than 50 facilities in Texas, Oklahoma and Colorado, as well as QRx Medical Management, LLC (QRx), a management services organization that provides financial and administrative services to support Questcare’s clinical operations. Questcare is expected to generate annual net revenues of $160 million.
Questcare clinicians manage patient care across multiple hospital-based clinical specialties including emergency department, hospitalist, critical care unit and pediatric and obstetric hospitalist care services. In addition, Questcare provides post-acute facility-based care as well as primary care, urgent care and telemedicine services.
“We have been committed to providing quality, effective care solutions to our patients and healthcare clients for the past 20 years,” said John H. Myers, MD, president of Questcare and chief executive officer of QRx. “Partnering with Envision Healthcare gives us an advanced platform and robust infrastructure to continue to build our integrated, multispecialty population health model and creates a framework for future growth opportunities. Our relationship with Envision will allow us to provide innovative solutions to meet healthcare reform challenges by improving the overall value of the care delivered for the patients, communities and populations we serve.”
Envision continues to grow its clinical services offering by advancing its care coordination strategies and expanding its geographic presence by attracting large provider groups that recognize the benefits of providing care as part of an integrated service model.
“There’s a heightened awareness of the central role that physicians and advanced practice providers play in advancing integrated care coordination strategies on behalf of patients,” said William A. Sanger, president, chief executive officer and chairman of the board of Envision. “Through our American Medical Response, EmCare and Evolution Health business units, we are contracting with health plans, health systems and communities throughout the country to effectively coordinate care across a comprehensive care continuum that includes telehealth, medical transportation and inpatient and outpatient services. The addition of Questcare’s clinical providers and expertise enhances our market-centric strategy for growth and broadens our population health value proposition overall.”
Envision expects to invest approximately $135 million to acquire Questcare Medical Services and QRx Medical Management. The transaction is anticipated to close in the fourth quarter of 2015 pending certain closing conditions. No additional terms were disclosed.
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 expected 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 acquisition of Rural/Metro; our ability to successfully integrate strategic acquisitions; 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.