MEDNAX’ MedData Adds RCM Company

MedData, Inc. made its second acquisition this year. The MEDNAX (NYSE: MD) subsidiary agreed to pay $400 million for revenue cycle management (RCM) company Cardon Outreach LLC, a portfolio company of Serent Capital.  Cardon Outreach provides specialized eligibility assistance, accounts receivable recovery services, third-party liability and other services.

Cardon Outreach works with more than 800 hospitals and other healthcare facilities in 46 states. The acquisition is expected to be accretive to GAAP earnings. MEDNAX anticipates the acquisition will add an initial $0.06 in annualized diluted earnings per share and $0.14 in annualized adjusted earnings per share. Cain Brothers is representing Cardon Outreach in this transaction, which is expected to close within the next 30 days.

It was only a month ago, on May 2, when MedData announced the acquisition of Duet Health, which provides multi-platform software solutions that help doctors educate, monitor and influence patient behavior while enabling patients to take a more active role in their care.  Coupled with MedData’s suite of patient-focused services, including eligibility and enrollment, third-party liability, and patient reimbursement, clients have a more complete solution to deal with the growing issue of patient responsibility. That deal did not disclose a price.

Prior to its acquisition by MEDNAX in August 2014, MedData specialized in RCM services for emergency medicine, hospitalists and wound care. MedData strengthened its RCM chops with its January 2012 acquisition of MedDirect, which added a new set of retail-oriented RCM tools to its product offering.

 

 

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