Emergency Medical Services Corporation (NYSE: EMS) (the “Company”)
today announced that it has entered into an agreement to acquire the
management services entity of Clinical Partners, P.A. (CPPA), a provider
of anesthesiology services, as well as an associated billing company.
Upon closing, the management entity will enter into a long-term
agreement to provide management services to CPPA, and the Company
anticipates that the acquisitions will contribute approximately $7
million in annual management services revenue. CPPA provides
anesthesiology services to more than 35 hospitals in six states with
annual provider revenues of approximately $85 million.
The purchase agreement was entered into effective on July 31, 2008 and
is expected to close within 30 days, subject to customary closing
conditions. Upon completion of the transaction, the two new entities
will become subsidiaries of EmCare, Inc., (EmCare), and will provide
anesthesiology practice management services to hospitals which will
include recruitment of physicians and certified registered nurse
anesthetists, risk management, billing and collection, and other
services.
William A. Sanger, EMSC Chairman and Chief Executive Officer, said, “This
acquisition further supports our strategy to expand into new markets and
services which we believe complement our core competencies and have
strong growth potential. We are pleased to respond to market demand by
expanding our lines of service to existing and new clients to help them
provide high-quality anesthesia services for their patients.”
Upon closing, Dr. Harold Bolnick, owner of CPPA, will become Chief
Medical Officer of EmCare’s newly formed
anesthesiology services division, and Jim McKinney, currently CEO and
President of CPPA’s management services
entity, will join EmCare as the division’s CEO.
Dr. Bolnick said, “We look forward to working
with EmCare and EMSC to expand services in the growing anesthesiology
market. EMSC’s broad national footprint will
afford opportunities to reach new markets across the nation.”
About Emergency Medical Services
Corporation
Emergency Medical Services Corporation (EMSC) is a leading provider of
emergency medical services in the United States. EMSC operates two
business segments: American Medical Response, Inc. (AMR), the Company’s
healthcare transportation services segment, and EmCare Holdings, Inc.
(EmCare), the Company’s emergency
department and hospital-based management services segment. AMR is the
leading provider of ambulance services in the United States.