EMS Completes Acquisitions - Analyst Blog

Emergency Medical Services Corp. (EMS) recently completed the acquisition of the anesthesia services providers associated with Clinical Partners, P.A. (CPPA). The transaction, completed on Jun 4, 2010, is expected to contribute $80 million in net revenues. 

Emergency Medical also completed the acquisition of California-based Gold Coast Ambulance Service, which caters to southwest Ventura County. This transaction, completed on May 28, is likely to contribute $8 million in annual net revenues and 18,000 transports. 

Following this transaction, Emergency Medical’s ambulance service provider, American Medical Response (AMR), and Gold Coast Ambulance will continue to operate under their respective brands in the Ventura County market. 

AMR is currently the largest provider of ambulance services in the US based on net revenue and number of vehicles. With an operational presence in approximately 38 states, it has an estimated 9% share of the total ambulance services market and a 25% share of the private provider ambulance market. 

AMR has entered into several new agreements in the past to provide medical transportation and transportation management services. In 2009, AMR entered into a new national medical transportation agreement with Sava Senior Care Administrative Services, which is a leading provider of short-term and long-term health care services with 185 facilities in 19 states. 

Additionally, Access to Care, AMR’s managed transportation business, entered into agreements to provide non-emergency transportation management services with HealthSpring based in Nashville and Bravo Healthcare based in Baltimore. 

Emergency Medical has been able to remain a leading player based on organic growth as well as through suitable acquisitions. We note that the acquisition of Pinnacle Anesthesia Consultants by Emergency Medical’s EmCare Holdings (EmCare) in December 2009 has positioned the company as a leading provider of anesthesiology services in the US. Of the 106 new contracts added during 2009, 23 came from the acquisition. 

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 containment. Moreover, the increase in aging population will be a significant demand driver for healthcare services, thereby resulting in an increase in ambulance transports, emergency department visits and hospital admissions.
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