Baxter International Inc. is in talks to buy medical-equipment maker Hill-Rom Holdings Inc., according to people familiar with the matter.

The talks are at an early stage, some of the people said, and there is no guarantee a deal will be reached. Should there be one, it would be fairly substantial, as Hill-Rom has a market value of about $8 billion.

Hill-Rom has already rebuffed a $144-per-share bid from Baxter, some of the people said.

Baxter’s market value is around $41 billion.

Chicago-based Hill-Rom, founded in 1915, makes medical gear such as hospital beds and patient-monitoring devices.

Baxter is a medical-technology company based in Deerfield, Ill., that focuses on areas including critical care, nutrition, and surgical products.

Corrections & Amplifications
Baxter’s business no longer focuses on hemophilia and immune disorders. An earlier version of this article incorrectly said such products are still in the company’s portfolio. (Corrected on July 28)

Write to Cara Lombardo at cara.lombardo@wsj.com and Dana Cimilluca at dana.cimilluca@wsj.com