Reuters has reported that private equity firm KKR is in late stage discussions with Envision Healthcare for the purchase of American Medical Response (AMR). The reported price is estimated to be around $2 billion dollars.
KKR already owns Air Medical Group, a provider of emergency air transportation services. Acquiring AMR would help build upon their presence in the medical transportation sector and theoretically be able to provide ground transportation when air transportation is deemed too risky, in cases of bad weather, or for shorter trips in lieu of the expensive helicopter.
An interesting part of the Reuter‘s article is this passage:
Envision has also been reviewing options for its population health management division, which it said lacks the scale to be as competitive in the space as they would like. It recently terminated the businesses most significant contract.
If the population health management division, Evolution Health, is not part of the deal then what does that mean for the Community Paramedicine/Mobile Integrated Healthcare programs it has supported for so long? Will the nation’s largest ambulance and emergency medical services provider be bowing out of the CP/MIH arena? Where exactly does that leave all the agencies that have doubled down on the CP/MIH programs?
An official announcement regarding the sale could come as early as this month, perhaps next month, or it may never come as negotiations are ongoing.