Update: After this story was originally published, TeamHealth rejected the AmSurg proposal.

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AmSurg, a Nashville, Tenn.-based operator of ambulatory surgery centers, has announced a $7.8 billion proposal to merge with TeamHealth in a stock-and-cash deal that would result in 50/50 ownership. According to AmSurg, the merger would create a network of more than 1,200 healthcare facilities and approximately 20,000 clinicians.

TeamHealth has yet to publicly respond to the proposal. Representatives from the two companies met back in September and discussed a potential merger then, but TeamHealth rejected AmSurg’s offer at the time.

Christopher A. Holden, AmSurg president and CEO, said in a statement that the proposed merger would be “transformational” for both the shareholders of both companies and the country’s entire physician services sector.

“This combination will be a true partnership that will integrate our industry-leading physician sub-specialties and expand and deepen the combined company’s health system relationships, instantly creating an extensive national geographic footprint,” Christopher A. Holden, AmSurg president and CEO, said in a statement. “Our combined scale and comprehensive service portfolio, coupled with a shared commitment to quality and coordination of care and maintaining close physician relationships, will have tremendous benefits for our health system clients, payers, physicians, and the employees of both companies.”

The terms of this proposed merger state that the company would assume the name TeamHealth, though both AmSurg and Sheridan, the physician services division of AmSurg, would keep their own brands.

TeamHealth would remain in its current headquarters in Knoxville, Tenn. The Board of Directors would consist of leaders from both AmSurg and TeamHealth.

Back in January, AmSurg acquired Radisphere Radiology through Sheridan.