Private equity firm Apollo Global Management LLC (APO.N) is in advanced talks to acquire LifePoint Health Inc (LPNT.O), in its latest bid to consolidate the rural U.S. hospital sector, two people familiar with the matter said on Friday.

The deal could value LifePoint at close to $6 billion, including debt, the sources said. It would come as weak admission trends, pressures on Medicaid funding and increased efforts by private U.S. insurers to reduce healthcare costs are driving hospital operators to seek merger partners that will give them more scale to tackle these issues.

LifePoint shares rose 36 percent to $64.85 on the news in after-hours trading on Friday.

READ FULL ARTICLE HERE