Dive Brief:
- Rural/Metro Corp., an Arizona-based private ambulance and fire protection company that operates in 21 states, is selling to Envision Healthcare Holdings through Envision's medical transportation segment, American Medical Response (AMR)
- In 2013, Rural/Metro Corp. filed for bankruptcy, and it is still struggling financially.
- The proposed merger may raise concerns about competition in some markets.
Dive Insight:
The deal is still subject to regulatory approval, but is expected to close later this year.
“As healthcare services models shift toward a more coordinated approach, the role of medical transportation clinicians takes on greater strategic significance,” William A. Sanger, chairman, president and chief executive officer of Envision, said in a statement. “With our advanced mobile delivery model, the practice of paramedics and EMTs is being expanded beyond the traditional role of providing pre-hospital stabilization and transport to healthcare facilities."
According to Arizona Central, if the deal goes through, it will decrease competition in some local ambulance markets, particularly those in which Rural/Metro and AMR were the largest – or in some cases only – competititors.