TeamHealth, a U.S. hospital staffing provider, has been the target of activist funds including Jana Partners LLC. Blackstone will pay TeamHealth shareholders $43.50 per share held, a premium of about 18% to the stock's Friday close. TeamHealth's shares rose to $42.45 in premarket trading on Monday. The deal, expected to close in the first quarter of 2017, would allow TeamHealth to cope with pricing pressure as a private company, amid a wave of consolidation. The U.S. physician services industry has been rapidly consolidating to counter rising administrative costs due to President Barack Obama's Affordable Care Act and the desire to offer a broader array of services to hospitals. Rival Amsurg, whose $5 billion bid for TeamHealth was snubbed last year, agreed in June to merge with Envision Healthcare Holdings (EVHC).