GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Nov. 9, 2009--
Emergency Medical Services Corporation (NYSE: EMS) (the “Company”) today
announced that it has significantly expanded its anesthesiology services
via definitive agreements to acquire Pinnacle Consultants Mid Atlantic
and the management services company of Pinnacle Anesthesia Consultants,
P.A. (the “MSO”).
Pinnacle Anesthesia Consultants and Pinnacle Consultants Mid Atlantic
are leading anesthesiology services providers in the United States
consisting of more than 700 clinicians serving in excess of 75 hospitals
and ambulatory surgery centers and have patient revenues in excess of
$300 million.
Upon closing of the transactions, the MSO and Pinnacle Consultants Mid
Atlantic will become part of AnesthesiaCare, EMSC’s anesthesiology
services operation, and AnesthesiaCare will be the exclusive provider of
management services to Pinnacle Anesthesia Consultants. These
transactions are expected to contribute approximately $100 million in
new EMSC net revenue from management fees and patient billings.
William A. Sanger, EMSC Chairman and Chief Executive Officer, said,
“This transaction establishes AnesthesiaCare as a leading provider of
anesthesia management services. Pinnacle is a strong, well managed
company and our affiliation enhances our position as a leader in the
growing outsourced physician services market.”
Michael Hicks M.D., CEO of Pinnacle, said, “We are pleased and excited
about future market expansion opportunities with EMSC. The combined
expertise of Pinnacle’s MSO staff and the staff of EMS is impressive and
will even better serve the needs of anesthesia clients. In a short time
AnesthesiaCare has positioned itself as a high quality, cost-effective
provider of anesthesiology, pain medicine and perioperative services.
Under this new arrangement, we believe both Pinnacle and AnesthesiaCare
will provide an excellent value proposition for new and existing
clients.”
The purchase agreements were entered into on November 9, 2009. The
transactions are subject to various closing conditions, including the
completion of a Hart-Scott-Rodino filing and approval of the
transactions by the equity holders of certain entities in the Pinnacle
group. The transactions are expected to close promptly following the
requisite approvals. It is expected that, at completion of the
transactions, AnesthesiaCare will become the leading manager of
anesthesia practices in the nation, providing services to more than 130
hospitals in nine states, which will include recruitment of physicians
and certified registered nurse anesthetists, risk management,
credentialing services, billing and collection, perioperative clinical
and process management as well as other services.
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 outsourced hospital-based physician services
segment. AMR is the leading provider of ambulance services in the United
States. EmCare is a leading provider of outsourced hospital-based
physician services. In 2008, EMSC provided services to 11.4 million
patients in nearly 2,100 communities nationwide. EMSC is headquartered
in Greenwood Village, Colorado. For additional information, visit www.emsc.net.
Forward-Looking Statements
Certain statements and information herein may be deemed to be
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. Forward-looking statements may
include, but are not limited to, statements relating to our objectives,
plans and strategies, and all statements (other than statements of
historical facts) that address activities, events or developments that
we intend, expect, project, believe or anticipate will or may occur in
the future. Any forward-looking statements herein are made as of the
date of this press release, and EMSC undertakes no duty to update or
revise 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,
developments and business decisions to differ materially from
forward-looking statements are described in EMSC's filings with the SEC
from time to time, including in the section entitled “Risk Factors” in
the Company’s most recent Annual Report on Form 10-K and subsequent
periodic reports. Among the factors that could cause future results to
differ materially from those provided in this press release are: the
impact on our revenue of changes in transport volume, mix of insured and
uninsured patients, and third party reimbursement rates and methods; the
adequacy of our insurance coverage and insurance reserves; potential
penalties or changes to our operations if we fail to comply with
extensive and complex government regulation of our industry; the impact
of potential changes in the healthcare industry generally resulting from
legislation currently under consideration; our ability to recruit and
retain qualified physicians and other healthcare professionals, and
enforce our non-compete agreements with our physicians; our ability to
generate cash flow to service our debt obligations; the cost of capital
expenditures to maintain and upgrade our vehicle fleet and medical
equipment; the loss of one or more members of our senior management
team; the outcome of government investigations of certain of our
business practices; our ability to successfully restructure our
operations to comply with future changes in government regulation; the
loss of existing contracts and the accuracy of our assessment of costs
under new contracts; the high level of competition in our industry; our
ability to implement our business strategy; our ability to successfully
integrate strategic acquisitions; and our ability to comply with the
terms of our settlement agreements with the government.
Source: Emergency Medical Services Corporation
EMSC
Deborah Hileman, 303-495-1210
deborah.hileman@emsc.net