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The top 6 RCM M&A transactions for 1H 2023

This year is shaping up to be a busy season for mergers and acquisitions in the revenue cycle management (“RCM”) space.  With this in mind, we’ve rated this year’s reported transactions and have identified the top RCM M&A, by month, for YTD 2023.

An in-depth analysis of various factors determines the ranking of the "Top RCM Acquisition." Notably, these factors include the importance of the acquisition from a larger industry perspective, the anticipated combined revenue, and the materiality of the acquisition from the perspective of the buyer. Moreover, in the transaction, it is a requirement that at least one party must be based in the U.S., and additionally, the seller must generate the majority of its revenues from U.S.-based health care systems or practices.

Top RCM Acquisition - January 2023:

Medusind Solutions (“Medusind”) is based in Miami, Florida and maintaining a dozen offices in the U.S. and India, was acquired by Alpine Investors through a leveraged buyout.  Medusind delivers its practice management platform and back-office RCM services to clients throughout the country leveraging its India-based team and additional resources in the United States. It has been acquiring competitors since 2015, with its initial acquisition of Miami-based Avisena.  Medusind reportedly employs nearly 4,000 team members who enable it to deliver its back-office services.

Top RCM Acquisition - February 2023:

Ventra Health, a tech-enabled RCM company, acquired Deras Global Services, a Philippines-based provider of RCM services for hospital-based physician specialties.  Deras provides back-office RCM support to U.S. based companies and has been working with Ventra for the last decade. In early 2021, Ventra Health raised $80 million in debt to support its continued growth. This move came after the company's acquisition of Abeo Management in late 2020. Ventra Health aims to use the financing to provide resources for its expansion initiatives and strategic development in the healthcare industry.

A close runner-up for the top February RCM acquisition slot was another offshore company acquisition. AGS Health acquired the patient access outsourcing business unit of Availity, based in India. This strategic move reflects the ongoing trend of companies expanding their reach globally in the revenue cycle management sector.  AGS intends to expand its artificial intelligence platform's capabilities to improve accuracy and streamline patient access operations through the acquisition.

Top RCM Acquisition - March 2023:

Chartis, an Illinois-based healthcare advisory group, acquired revenue cycle consultant Chi-Matic of Verona, Wisconsin. Chartis supports more than 600 clients including providers, payers, health services organizations and technology companies. Chi-Matic positions itself as a revenue cycle optimization firm. The company specializes in assisting Epic-based healthcare organizations and other clients. Chi-Matic's focus lies in facilitating the transformation of revenue cycles through technological enhancements, process improvements, and increased staff efficiency.

Top RCM Acquisition - April 2023:

Sagility, LLC, formerly known as HGS Healthcare LLC, is a Colorado-based company. The organization boasts a workforce of over 30,000 employees spanning across five countries. With revenues surpassing $500 million, Sagility, LLC, made a strategic move by acquiring Devlin Consulting, Inc., a company based in Arizona.  The acquisition brings together Sagility's service offerings, encompassing clinical operations, member engagement, provider solutions, payment integrity, claims cost containment, and analytics. Devlin Consulting's advanced technology platform is now integrated with these services. This strategic move aims to enhance the overall capabilities and offerings of both organizations in the healthcare industry.

A close runner up for the top April RCM M&A was the acquisition of another Arizona-based company, E&A Medical Billing Service and Software, by Kovo HealthTech Corporation (TSXV: KOVO) a Canada-based owner of RCM businesses in the U.S.

Top RCM Acquisition - May 2023:

Aspirion Health Resources, based in Columbus, Ohio, acquired FIRM Revenue Cycle Management, a Nevada-based corporation.  FIRM is an attorney-driven RCM company that serves hospital clients throughout the U.S.  

In 2022, Linden Capital Partners and Varsity Healthcare Partners acquired Aspirion. Over the last six years, Aspirion has expanded its portfolio through the acquisition of multiple denial management companies, such as ARx based in Franklin, Tennessee, and Liberty Billing located in New Jersey.

Top RCM Acquisition - June 2023:

Elevate Patient Financial Solutions, Inc., a Texas-based corporation, acquired Revenue Masters, a Florida LLC.  Revenue Masters provides a range of SaaS and technology-enabled services. These services are designed to assist customers in maximizing revenue. They also ensure compliance with pricing and cost transparency regulations. The offerings cater to the evolving needs of businesses in navigating complex healthcare financial landscapes. Elevate, once a subsidiary of Pediatrix Medical Group, Inc. (NYSE: MD), was acquired by The Edgewater Funds and Frazier Healthcare Partners in 2019. Building on its growth strategy, Elevate has expanded its presence through the acquisition of various RCM adjacent businesses across the country. Notable acquisitions include Maryland-based Deco Recovery and RevClaims in Mississippi.

We have also complied a list of top RCM M&A for every month in th Q3, which you can read here.