Revenue cycle management companies remain a strong investment opportunity for financial buyers. As of Mid-September 2017, 52% of RCM targets were acquired by private equity firms or other PE-backed eHeath companies. One Georgia-based RCM firm continues to thrive following an investment from Bain Capital.
In June 2016, Bain Capital acquired Navicure Inc. for an undisclosed price. Navicure provides cloud-based claims management and patient payment solutions for physician practices and hospitals. Its revenue cycle management platform served approximately 90,000 U.S. providers at the time of the deal.
Fast forward to September 2017, Navicure now serves more than 100,000 providers. On September 14, 2017, the company announced that it was merging with privately-held Zirmed. Founded in 1999, ZirMed delivers cloud-based business and clinical performance management solutions that help providers manage population health and optimize fee-for-service and value-based reimbursement. Terms were not disclosed.
The combined company will provide more than 400,000 hospitals, health systems, and ambulatory services organizations (including physician practices) with a comprehensive suite of analytics-driven solutions to help improve financial performance. Both companies will maintain existing locations and teams in Duluth, Georgia, Louisville, Kentucky, and Chicago, Illinois. During the transition period, the company plans to operate under both the Navicure and ZirMed brands.
