Revenue Cycle Management
Revenue cycle management (RCM) is a relatively young industry within the outsourced business services sector. It first came into existence in the mid to late 1980’s when large IT management companies began to deploy new systems designed to help clients more effectively manage their transaction processing, billing and receivables management needs. RCM established a name for itself in the healthcare market, whose constituents were only too eager to obtain IT solutions that would reduce their costs and streamline their operations without hurting their relationships with patients. Over the next 20 years the RCM industry slowly gained recognition and traction within the healthcare market as hospital systems and physician groups became more comfortable outsourcing their IT and related service needs. It also benefited from another important demographic trend – as the U.S. population became older, the need for effective healthcare solutions became greater.
While the IT management portion of the RCM industry became firmly established in the 1990s and 2000s, during this time there was also a growing need for specialty services that augmented the capabilities of the IT systems. Contrary to the beliefs of many IT providers and healthcare CFOs, certain functions still needed the involvement of experienced people – patient eligibility (Medicare, Medicaid, etc), billing, denial claims, etc., which were eventually outsourced to companies who specialized in those services.
As a result, during the mid to late 2000s the RCM market experienced a significant increase in merger and acquisition activity as well as initial and secondary public offerings, driven by investors and strategic buyers eager to buy their way into this fast growing market. In addition, large IT management companies began to acquire specialty RCM servicing companies to expand their client base and service offerings, and create more stickiness with their client relationships. Certain RCM companies have also expanded their servicing capabilities into the healthcare collections market to create an end-to-end RCM solution for healthcare clients. This vertical integration of services has also prompted many healthcare accounts receivable management companies to move up into the RCM industry.
The healthcare RCM industry continues to grow and attract interest from financial and strategic buyers. Kaulkin Ginsberg has worked with many RCM and healthcare receivables management companies over the years, serving as an advisor to board-level executives and helping them determine how best to grow and exit their businesses. We understand the history of the RCM industry, continue to garner expertise within it, and have the foresight to know where the industry is heading. We are excited about the potential within the RCM industry and look forward to working with owners and executives who are committed to achieving their growth and exit objectives.
Mutual Hospital Services, a not-for-profit healthcare collection agency, was sold to Kadent Corporation (formerly ARM Holdings, Inc.).
- A letter from MHS (PDF – 103k)
ARC Group Associates, a healthcare revenue cycle management company in Pennsylvania, was acquired by Receivables Outsourcing, Inc. (ROI), an ARM company based in Maryland.
Kaulkin Ginsberg is pleased to announce the acquisition of Patient Financial Services, Inc. and Absolute Collection Service, Incorporated (collectively, “ACS”) by Optimum Outcomes, a leading provider of account resolution services to hospitals ...
Taking Advantage of the Health Care Buzz
April 23, 2015
In Septemeber 2014, Kaulkin Ginsberg wrote about Health Care and the Amazing Aging U.S. Population, a blog post discussing the implications of the baby boomer generation's impending retirement. Now, we take a look at some of the major regulations impacting both the U.S. health care system and the ARM industry, and how ARM providers can get involved with this expanding segment.
The Affordable Care Act - also known as "Obamacare" - created a new, growing... ....
» see this post » all posts
The Roller Coaster Ride Called College Admissions
April 14, 2015
Like the countless parents of high school seniors before us, my wife and I spent the past year living through the college selection process with our oldest son. Last night, Zach decided that he will be attending the University of Maryland, College Park, in the fall. This morning, I found myself reflecting on the exciting, emotional, pressure-packed, and sometimes ruthless college selection process we just endured. For those parents or students who have not yet.......
» see this post » all posts
M&A Pricing Snapshot
March 30, 2015
Buyers of accounts receivable management (ARM) firms are continuing their acquisitive ways, completing more transactions in a one-year time period in 2014 than at any point since the start of the Great Recession.
» see this post » all posts
Four Seasons Hotel
Las Vegas, NV
May 6th-8th, 2015
This content rich educational conference gives the techniques, strategies and resources for maximizing collection and recovery outcomes. Our goal is to enrich the intensity of the conference for the exhibitor, attendee and sponsor alike with an unparalleled learning experience. This is an exclusive gathering of industry professionals like none.......
The Omni Hotel
May 6th-9th, 2015
Mark your calendar now! Before you know it, hundreds of NARCA members will be descending on Nashville, Tennessee, for the NARCA 2015 Spring Collection Conference at Nashville's newest downtown hotel, the Omni Nashville.
Every NARCA conference gives you the best subject matter experts, discussions about issues that impact your business, great educational.......
Crist Boardroom, Samuel Riggs IV Alumni Center
University of Maryland, College Park
May 12th, 2015
Join Topline's executives at this half-day event for a gathering of prominent leaders and experienced advisors that will focus on critical growth and effective exit strategies for established businesses. Whether you're expanding your business, thinking of selling or simply looking for more information,.......