Ramsay Health Care Limited (ASX:RHC) could move to sell non-performing hospital assets within its France-based Ramsay Sante business, with buyers understood to be thin on the ground for the unit as a whole. Pressure is mounting on Ramsay Chairman David Thodey to boost the company's share price after a potential buyout by KKR & Co. Inc. for $88 a share, or $20 billion, failed to eventuate last year.

This was considered to be partly due to challenges gaining a handle on the performance of the France operation. Most have seen the solution as selling its 52.3% holding in Ramsay Sante, its UK operation or its Nordic hospitals. However, Ramsay's UK hospital business is now performing far more strongly, while the Nordic business is also a good performer, although only accounts for about 25% of its earnings in Europe.

The obvious buyer is considered to be the hospital group ELSAN SAS, which is about 43% owned by KKR. However, another option is selling the poor performing hospitals within Ramsay Sante, causing the overall business performance to improve and the stock to re-rate. Private equity buyers would likely take the non-core hospitals off its hands.