Shares for Envision Healthcare Holdings, one of the largest outsourced physician service providers, spiked about 8 percent Thursday as news surfaced of a potential merger with AmSurg — another major provider in the industry.
The merger would increase operating efficiency and profit margins for the two companies, sources familiar with the matter told Reuters, at a time when consolidation among health insurance companies and hospitals places downward pressure on costs throughout health care.
The Wall Street Journal also reported on a possible merger between the two firms. Neither company immediately responded to CNBC's request for comment.
Envision and AmSurg's market caps were $4.8 billion and $4.27 billion, respectively, as of Wednesday's close. Amsurg's stock closed up nearly 4 percent.
While negotiations are confidential, Reuters reported an announcement about the deal can be expected as early as next week.
Thursday's spike put Envision shares on track for a 12 percent weekly gain.
Envision week to date