- A combination would be very beneficial to Amsurg (NASDAQ:AMSG) by giving it more exposure to the growing physician staffing industry, while moving away from the commodity-based ambulatory surgery business, writes The Simplistic Investor, who penned a bullish case on the stock two months ago (the stock's about flat since).
- As for Envision (NYSE:EVHC), it would become the largest physician staffing company in terms of revenue, but might demand a heavy premium to join the deal as Amsurg has far more to gain.
- While the deal (were it go through) would certainly shake up the physician staffing industry, TeamHealth (NYSE:TMH) is still best-positioned going forward, he writes. A combined Amsurg/Envision Healthcare will be a mix of all different businesses, each wanting capital to grow. More importantly, margin pressure on Amsurg's ambulatory surgery business is bound to be an issue over the next few years.