NASHVILLE, Tenn., Jan. 26 /PRNewswire-FirstCall/ -- Emdeon Inc. (NYSE: EM), a leading provider of healthcare revenue and payment cycle management solutions, today announced the acquisition of FutureVision Technologies ("FVTech"), a premier provider of outsourced services specializing in electronic data conversion and information management solutions. By combining FVTech's innovative document conversion technology with Emdeon's broad connectivity network and revenue cycle management solutions, Emdeon will now have the ability to electronically process virtually all patient and third party healthcare payments regardless of the format in which the payments are submitted.
Commenting on the strategic benefit of the acquisition, George Lazenby, chief executive officer of Emdeon said, "Today, roughly 90% of payments in healthcare are conducted via paper. At Emdeon, we are committed to changing this fact. FVTech's technology, when combined with our industry leading all-payer network, will position Emdeon to help our customers overcome many of the barriers that prevent automation of these payments. With FVTech's capabilities, Emdeon can now automate 100% of the posting for both paper and electronic payments for our provider customers. These capabilities will allow Emdeon to create immediate savings for our customers through automation and help reduce costly errors that commonly occur through manual processes."
Brad Banyai, chief executive officer for FVTech, stated, "As a result of our acquisition by Emdeon, we can properly leverage our technology and experience with Emdeon's vast connectivity in the marketplace and make real inroads to processing healthcare payment transactions electronically. For more than ten years, FVTech has focused on creating electronic document solutions for the healthcare industry and we are excited about layering our solutions into the Emdeon network."
Emdeon currently distributes payments and remittance data to more than 500,000 healthcare providers. According to a November 2009 report by Celent, there could be as much as $11 billion in annual savings realized in the U.S. alone by converting paper checks and explanation of benefits to electronic data. FVTech's documentation conversion technology, when coupled with Emdeon's consumer payment processing services, will provide a comprehensive payment solution for providers. The new capabilities acquired as a result of the FVTech acquisition will also allow Emdeon to automate the posting of payments from its network along with other payer payments to automate this historically labor-intensive process. This 360 degree view of payments will offer healthcare providers the ability to manage 100% of their third party payer and consumer payments from one vendor, as well as automated reconciliation and posting capabilities.
Consideration for the transaction was approximately $20 million in cash at closing, with additional contingent payments of $0 to $40 million in cash based upon the financial performance of the acquired business for the two and three year periods following the closing.
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, its 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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SOURCE Emdeon Inc.