Recently, Emergency Medical Services Corporation’s (EMS) EmCare Holdings (EmCare) completed the acquisition of Affilion, an emergency physician staffing and management company. Pursuant to the acquisition, Affilion became the wholly owned subsidiary of EmCare, thereby expanding the company’s facility-based service lines in Arizona and New Mexico.
Emergency Medical also completed the acquisition of Fredericksburg Anesthesia Consultant (“FAC”), which provides anesthesia services to facilities in south Texas. Following the acquisition, FAC became a part of the company’s anesthesia services business and expands the cross-selling opportunities of the company to additional markets.
The transactions were completed on June 30, 2010, and are expected to contribute $23 million to the annual revenue.
Emergency Medical has been able to remain a leading player based on organic growth as well as through suitable acquisitions. EmCare is the company’s outsourced facility-based physician services segment, which provides facility-based physician services for emergency departments and hospitalist/inpatient, anesthesiology, radiology, and teleradiology programs.
We note that the acquisition of Pinnacle Anesthesia Consultants by EmCare Holdings in December 2009, has positioned the company as one of the prominent anesthesiology services provider in the U.S. Of the 106 new contracts added during 2009, 23 came from the acquisitions.
We are quite optimistic about the future potential of the emergency medical services market as health authorities and government agencies are increasingly outsourcing these services for cost curtailment. Moreover, the increase in aging population will be a significant demand driver for health care services, thereby resulting in an increase in ambulance, emergency department visits and hospital admissions.
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