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.

MHS - Kadent

Mutual Hospital Services, a not-for-profit healthcare collection agency, was sold to Kadent Corporation (formerly ARM Holdings, Inc.).

ARC and ROI

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 ...

 

 

 

 

LATEST BLOGS

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A recent article published by Mergers & Acquisitions, an online publication produced by themiddlemarket.com, caught my attention. In her article, "Has Mid- ....
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From October 2015 to January 2016 - just four months - there were 93 financial institution mergers alone. During the first three quarters of 2015, there were 224 mergers. That number excludes the 93 merger ....
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EVENTS

DBA International's 19th Annual Conference

ARIA Resort and Casino
Las Vegas, NV
February 9th-11th, 2016

DBA International's 19th Annual Conference - Moving Forward Together - is one of the most well-attended events in the industry, attracting more than 1,100 participants. The event provides abundant networking opportunities with key players in the debt buying ....

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ACA of Texas 68th Annual Conference & Expo

Menger Hotel
San Antonio, TX
March 14th-16th, 2016

Join the American Collectors Association of Texas for their 68th annual conference and southwest exposition. Build relationships as you exchange ideas with fellow members. Gain insight from their experiences and share bold ideas and solutions of your own. This conference is your time ....

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Debt Collection Forum 2016

Ameristar St. Charles
St. Charles, MO
March 21st - 23rd, 2016

The Debt Collection Forum brings together senior-level executives, front-line collection managers, and compliance professionals from across the country to provide real-world solutions and strategies to problems we encounter every day. Join us at the ....

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