Hours after abandoning its audacious bid to buy TeamHealth, AmSurg has announced that its physician services division is acquiring a large anesthesiology practice in Phoenix. Valley Anesthesiology & Pain Consultants is home to about 280 doctors and allied care providers and works at 21 hospitals, 25 surgery centers and a number of doctors' offices in the Phoenix market.
Also still on the M&A path is long-term care provider Diversicare. The Brentwood-based company has paid $3.9 million for a 60-bed skilled nursing center in Fulton, Kentucky. The deal grows Diversicare's holdings to 12 in Kentucky and 55 in total.
AmSurg's headline-grabbing proposal to acquire Knoxville-based TeamHealth overshadowed its strong third-quarter earnings preview, said Avondale Partners analyst Paula Torch in a report late Tuesday.
The company beat analysts' expectations by a wide margin, posting estimated revenues for the third quarter of $650 million compared to $502 million the year prior. Adjusted net earnings were estimated to be $53.0 million compared to $34.6 million in the third quarter of last year. Adjusted earnings per diluted share are expected to be $1.03, compared to 69 cents.
"Given AMSG's stock is currently trading down 5 percent, we believe the merger proposal is overshadowing a strong earnings beat in 3Q," Torch wrote in her report.
AmSurg took its proposal to buy TeamHealth for $7.8 billion public Tuesday. TeamHealth rejected the plan, saying it undervalues the company. AmSurg shares (Ticker: AMSG) closed Tuesday trading down 4 percent at $74.88.
Surgery and physician services company AmSurg is moving up the ranks of Standard & Poor's. The stock index compilers on Wednesday said the Burton Hills-based company will jump from the SmallCap 600 to the MidCap 400 on the afternoon of Oct. 14. Shares of AmSurg (Ticker: AMSG) rose more than 1 percent after hours Wednesday, adding to the nearly 3 percent gain from the regular session. Year to date, they're up almost 50 percent.
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