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Shares of LifePoint Health (LPNT) surged in after-hours trading Friday following a report the company is in advanced talks to be acquired.

LifePoint shares rose $19.10 or 40% to $67 in after-hours trading.

The rural hospital operator is in talks with private equity firm Apollo Global Management, Reuters reported, citing two unnamed sources familiar with the discussions. The transaction that would value the company at around $6 billion including nearly $3 billion in debt, according to the report.

Apollo already owns another hospital chain focused on rural markets. Regional and rural hospitals are coming under pressure from reduced Medicaid payments and efforts to cut costs, according to the report.

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