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Envision Healthcare Corportaion

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Envision Healthcare Corporation is optimistic about the consolidating physician services market. It had an active start to the acquisition strategy for 2017, having completed four acquisitions in Physician Services in Jan 2017 and the buyout of Imaging Advantage LLC, in Apr 2017. The company is in the process of selling its once indispensable medical transportation business American Medical Response (AMR) to focus on physician staffing. The company, however, suffers from high indebtedness. It has about 4.3 times EBITDA, which is above the 3 to 4 times EBITDA that the company feels comfortable at. Also, its operating expense is on the rise and exceeding revenue growth. The company’s shares have underperformed the Zacks categorized Medical Outpatient and Home Healthcare industry, year to date.

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