Transaction illustrates continued M&A activity within the healthcare sector of the accounts receivable management (ARM) and revenue cycle management (RCM) industries
Philadelphia, PA – July 31, 2012 – 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 and hospital-based physician groups throughout the United States. This transaction expands Optimum’s client base and enhances their comprehensive suite of revenue cycle services. Terms of the transaction were not disclosed.
“The acquisition of ACS represents another critical milestone in our vision of becoming the recognized leader in optimizing financial outcomes and enhancing the total patient experience,” stated Mike Jacoutot, Chief Executive Officer of Optimum Outcomes. “With a trusted brand, best-in-class solutions and experienced management team, ACS is a highly strategic fit for Optimum Outcomes.”
Headquartered in Raleigh, North Carolina, ACS has approximately 275 employees and a strong base of clients across the United States, with a particular concentration in the Southeast. ACS provides several services to its hospital clients, primarily extended business office (EBO) self-pay billing and account resolution, aged receivables (≥120 days) account resolution and data warehousing services for hospitals that are undertaking, or have recently completed, systems conversions.
According to Michael Lamm, Director at Kaulkin Ginsberg and ACS’ M&A advisor, “We are excited to bring together ACS with Waud’s portfolio company, Optimum Outcomes. The two businesses culturally mesh well and are now positioned to be one of the largest healthcare focused account resolution platforms in the U.S.”
Mary Ann McLaughlin, Chief Operating Officer of Optimum Outcomes, explained further, “ACS is a strong cultural fit for us. Leveraging the best practices of both companies, we can provide our clients with an impressive array of services that will further increase cash collections, reduce A/R days outstanding, reduce insurance denials and deliver higher patient satisfaction.”
“We had always viewed Optimum Outcomes as a formidable competitor, having competed directly against them in the marketplace,” said Robb Cass, President of ACS. “We are thrilled to join forces with Optimum Outcomes so that we can create even more value for our clients.” Mr. Cass has assumed the role of president of ACS and will also manage the company’s EBO self-pay division.
Optimum Outcomes now serves more than 300 clients across the United States, has over 500 dedicated employees and operates three contact centers nationally.
“Since our initial investment two years ago, Optimum Outcomes has quickly become one of the largest companies in the healthcare account resolution industry,” said David Neighbours, Chairman of Optimum Outcomes and Partner at Waud Capital Partners. “We are excited about the company’s growth prospects and look forward to continuing to work with Mike and his team to build Optimum Outcomes into a premier provider of healthcare revenue cycle services.”
About Kaulkin Ginsberg
Founded in 1989, Kaulkin Ginsberg is the foremost M&A and strategic advisory firm that specializes in the outsourced businesses services sector. The firm has completed over 130 transactions representing nearly $3.5 billion in shareholder value for a variety of clients – from small family businesses to Fortune 500 companies to various financial investment firms. Kaulkin Ginsberg operates from two offices based in Rockville, MD and Philadelphia, PA.
For more information about Kaulkin Ginsberg, visit www.kaulkin.com.
About Optimum Outcomes
Established in 2002 and headquartered in suburban Chicago, Optimum Outcomes partners with over 300 hospitals and hospital-based physician groups across the United States to provide a wide range of account resolution services, including EBO self-pay, third-party insurance and aged receivables recovery. Through a patient-centric approach, the company assists its clients with accelerating cash flow, increasing profitability and driving operational efficiencies in the revenue cycle. Optimum Outcomes operates three contact centers, with locations in Downers Grove, Illinois (headquarters); Raleigh, North Carolina; and Hoover (suburban Birmingham), Alabama. In partnership with Mike Jacoutot and Mary Ann McLaughlin, Waud Capital Partners acquired Optimum Outcomes in May 2011.
For additional information on Optimum Outcomes, visit www.oorcs.com.
About Waud Capital Partners
Waud Capital Partners (WCP) is a private equity investment firm founded in 1993 that partners with exceptional management teams to invest in middle-market growth equity investments, buyouts, industry consolidations and recapitalizations. The firm seeks to invest $10 million to $100 million in private companies in the following four areas: healthcare services, business and consumer services, specialty distribution and value-added industrial businesses. Typically, the companies in which WCP invests have enterprise values between $30 million and $300 million. The firm has completed more than 100 acquisitions since its founding and currently has approximately $1 billion of capital under management.
For additional information on WCP, visit www.waudcapital.com.
Michael Lamm, Director
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