Firstsource Solutions Ltd has informed that the Company has entered into an agreement to acquire MedAssist Holding, Inc., a leading provider of revenue cycle management in the healthcare industry in the US. The acquisition is valued at US $330 million and is subject to the regulatory approval under the US HSR Act (Hart - Scott - Rodino Anti Trust Improvements Act of 1976).
In this regard the Company has issued the following Press Release:
Firstsource Solutions Ltd on August 29, 2007 has announced that it has entered into an agreement to acquire MedAssist Holding, Inc., a leading provider of revenue cycle management in the healthcare industry in the U.S. The acquisition is valued at US $330 million and is subject to the regulatory approval under the US HSR statute.
MedAssist, headquartered in Louisville, Kentucky has 1,400 employees and is a pan-American provider of revenue cycle management services to the healthcare industry. This includes Eligibility Services, Receivables Management Services and Post-default Collections services for healthcare providers. The Company has over 1,000 clients including hospitals, large physician groups and alternate site providers. MedAssist''s revenue for year ended December 31, 2006 was US $99 million.
The MedAssist acquisition presents significant synergies for Firstsource. Firstsource, which already has a strong presence in the US healthcare BPO space on the payor side (insurance Company end) will now also enter the provider side (hospitals end) of healthcare BPO services. Currently, hospital care in the US amounts to approx. US $700 billion and administrative costs are estimated to be 14%, or US $100 billion, which is a huge opportunity.
Source : www.indian-commodity.com
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