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 ...
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ARIA Resort and Casino
Las Vegas, NV
February 3rd-5th, 2015
DBA International's 18th Annual Conference - Passport to the Future - is one of the most well attended events in the industry attracting more than 1,500 attendees. As a sponsor, your company will receive unprecedented exposure to potential clients and leaders in the receivables industry. Providing opportunities for exceptional lead generation.......
Crowne Plaza Austin
February 16th-18th, 2015
The 67th Annual Conference and Exposition will be moving to Austin, in conjunction with its 2015 Legislative Summit. Come early or stay over, network with your peers, learn from nationally recognized experts and see the latest products and services from our 30 exhibitors.
Mike Ginsberg, President and CEO of Kaulkin Ginsberg, will be speaking.......
San Antonio, TX
March 25th-27th, 2015
Join your fellow ACA members in San Antonio and reignite your passion for compliance and healthcare collections at the Spring Forum & Expo 2015! Experience fresh approaches around every corner to help your business leap ahead of the competition.
Click here for more information.