Nashville, Tenn.-based HCA Healthcare has fully acquired Valesco, its joint venture with EmCare, a physician practice management firm affiliated with Envision Healthcare.
The acquisition was finalized in June, according to HCA and Envision in statements shared with Becker's. The deal comes after HCA increased its ownership of Valesco from 50% to 90% in April 2023.
"HCA Healthcare has fully integrated Valesco into HCA Healthcare. We believe this will create more opportunities for us to drive value for our patients, physician partners and our hospitals while improving operational performance of Valesco," an HCA spokesperson told Becker's Aug. 27.
In an October 2023 earnings call, HCA CEO Sam Hazen said the company's results were "unfavorably impacted" by Valesco's performance amid increased staffing costs and lower-than-expected sales. At the time, the system anticipated a loss of about $50 million per quarter from the venture. Since then, HCA has sought to integrate the venture and improve operational results.
"As a leading medical group, we are continuously evaluating opportunities to empower our clinicians and partners and support the communities we serve together," an Envision spokesperson told Becker's. "Envision is committed to continuing its relationship with HCA Healthcare and collaborating across several capacities to provide patients care when they need it most."
Envision filed for bankruptcy in May 2023. The company eliminated 70% of its debt during the restructuring.