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... Read More »MedAssets-Precyse Adds Equation
Pamplona Capital Management is building out its healthcare data services. In November 2015, the firm spent $2.7 billion to acquire publicly traded MedAssets, Inc., which served four out of every five hospitals in the United States with technology-enabled financial products and services. Once it spun off the Spend and Clinical Resource Management segment to VHA-UHC Alliance (now called Vizient), MedAssets’ Revenue Cycle Management segment with Precyse, another portfolio company, to offer end-to-end RCM and HIM solutions. Now MedAssets-Precyse, as it’s known, is adding Equation, a Utah-based financial and clinical healthcare analytics and consulting company. Now that... Read More »eHealth Deals in Q1:16
Merger and acquisition activity edged up in the first quarter, up 17% to 35 transactions compared with the fourth quarter. The first quarter activity made up 27% of the 132 deals announced in the previous 12 months. Investor interest in this sector remains strong, particularly for revenue cycle management programs and data analytics technologies that help health care providers across the care continuum become more efficient and cut costs. Read More »PE Firms Target Revenue Cycle Management
Follow the money. Everywhere in health care today, controlling the flow of revenue is critical to success, from physician practices to hospitals, skilled nursing facilities and more. As critical as it is, revenue cycle management took a back seat to electronic medical records in recent years, as CMS enforced the early stages of Meaningful Use to get physician practices on board with EMRs. Now that the switch to the ICD-10 coding system is firmly in place, investors’ attention has turned back to revenue cycle management (RCM). In just the first four months of 2016, nine RCM companies have been acquired, surpassing 2014’s total of eight RCM deals, and putting this year on track to beat... Read More »MEDNAX Looks to Improve the Patient Experience
MEDNAX , Inc. (NYSE: MD), once focused exclusively on managing neonatology and anesthesia practices, is moving to manage the entire patient experience. In August 2014, it acquired MedData, Inc., a revenue cycle management company for an undisclosed price. The plan was to provide management services to facilities and physician groups beyond its then-existing footprint. A year later, in September 2015, MedData brought aboard Alegis Revenue Group, a national third-party receivables company. Alegis managed more than $3 billion in charges for more than 240 hospitals nationwide. The company’s patient-advocacy approach to eligibility and enrollment cut revenue cycle time from referral to... Read More »Schedule a demo
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