NASHVILLE, Tenn., June 21 /PRNewswire-FirstCall/ -- Emdeon Inc. (NYSE: EM), a leading provider of healthcare revenue and payment cycle management solutions, today announced the acquisition of Chapin Revenue Cycle Management, LLC ("Chapin"). Based in Tampa, Florida, Chapin is a leading technology-enabled provider of hospital-based revenue cycle services including accounts receivable management, medical denials, appeals and collection improvement initiatives.
Chapin utilizes a proprietary contract management system built specifically for rapid and precise calculations of reimbursement amounts from all types of healthcare payers and contract arrangements. By leveraging this technology and Chapin's extensive experience in outsourced hospital revenue cycle management services, Emdeon will offer an added service layer designed to enhance the financial performance of institutional healthcare providers across its broad network.
"Healthcare providers continue to face financial challenges associated with rising accounts receivable balances, inaccurate claim submissions and declining cash collections from unpaid or underpaid claims," said George Lazenby, chief executive officer for Emdeon. "Our acquisition of Chapin will help Emdeon address these industry-wide problems and strengthen our already solid foundation in revenue cycle management solutions across the entire patient encounter."
In addition to expanding its service portfolio, the acquisition of Chapin further advances Emdeon's payment integrity initiatives focused on lowering administrative costs and improving accuracy in the billing and payment cycles of both payers and providers. The transaction also will strengthen Emdeon's ability to drive continued acceleration of the hospital revenue cycle where Emdeon already offers leading technology solutions including eligibility, claim submission, collection, posting, denial management and patient billing.
"Chapin operates as an extension of a provider's patient financial services staff focusing on specific revenue cycle issues in which providers historically lacked the tools or resources to adequately address," said Keith Henthorne, executive chairman for Chapin. "Enabling Chapin's solutions within the Emdeon network will help hospitals improve collections and their ability to cost effectively bill for and monitor complex contractual arrangements."
Consideration for the transaction was $18.9 million paid at closing, comprised of $16.2 million in cash and $2.7 million in restricted shares of Emdeon Class A common stock, plus additional contingent payments totaling up to $8.1 million to be paid in additional restricted shares of Emdeon Class A common stock. The contingent payments will be paid based upon the attainment of financial performance objectives of the acquired business from the closing through the end of 2012.
BC Zeigler and Company acted as financial advisor to Chapin.
Emdeon is a leading provider of revenue and payment cycle management solutions, connecting payers, providers and patients in the U.S. healthcare system. Emdeon's product and service offerings integrate and automate key business and administrative functions of its payer and provider customers throughout the patient encounter. Through the use of Emdeon's comprehensive suite of products and services, which are designed to easily integrate with existing technology infrastructures, customers are able to improve efficiency, reduce costs, increase cash flow and more efficiently manage the complex revenue and payment cycle process. For more information, visit www.emdeon.com.
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