In the eHealth sector, acquisitions for revenue cycle management (RCM) firms are usually headline-worthy deals, such as Frazier Healthcare Partners‘ $250 million purchase of MedData, Inc. from Mednax (NYSE: MD) back in October 2019. RCM companies tend to service hospitals, large health systems and healthcare providers. MedData, for instance, serves more than 10,000 physicians in a network of more than 3,000 facilities nationwide. However, Coronis Health focuses on something more niche.
A portfolio company of 424 Capital (formerly known as Brook Venture Partners), Coronis Health announced last week it acquired Reliabill, LLC, an RCM provider to the behavioral health market, focusing on substance abuse and eating disorder facilities. These are niche sectors we don’t often hear about in RCM transactions. The addition of Reliabill expands Coronis’ capabilities to serve to an under-addressed segment of the healthcare market. Reliabill’s CEO will join the Coronis leadership team. No financial terms were disclosed.
Back in January, Coronis Health announced it purchased AVEC Health Solutions, LLC, a provider of revenue cycle and coding services for rural critical access hospitals, and ML Medical Billing, a provider of revenue cycle and credentialing services focused primarily on behavioral health. Both acquisitions added new lines of business for the company, expanding Coronis’ market reach.
Coronis’ boutique approach will most likely prove especially important during the Covid-19 pandemic. Rural hospitals were already strapped for cash due to the shrinking Medicare reimbursements and lack of higher private-pay insurance patients. Bankruptcies were already severe among healthcare services companies, and the Centers for Medicare & Medicaid Services issued guidelines that all elective surgeries, non-essential medical, surgical and dental procedures be delayed, which could cut off major sources of revenue for smaller, rural hospitals.
For more information on the state of hospitals, check out the recently published 2020 Healthcare Services Acquisition Report, which provides exclusive trend analysis on M&A in hospitals, behavioral health care companies, physician groups, and more.