Emdeon buys revenue cycle services provider for up to $27M

Emdeon, a healthcare revenue and payment cycle management company, has acquired Chapin Revenue Cycle Management, a Tampa, Fla.-based provider of hospital-based revenue cycle services, including accounts receivable management, medical denials, appeals and collection improvement initiatives.

Consideration for the transaction was $18.9 million paid at closing, comprised of $16.2 million in cash and $2.7 million in restricted shares of Emdeon Class A common stock, plus additional contingent payments totaling up to $8.1 million to be paid in additional restricted shares of Emdeon Class A common stock, according to the Nashville, Tenn.-based company. The contingent payments will be paid based upon the attainment of financial performance objectives of the acquired business from the closing through the end of 2012.

Chapin utilizes a proprietary contract management system built for calculations of reimbursement amounts from all types of healthcare payors and contract arrangements, Emdeon stated. The company also noted that it intends to leverage Chapin’s technology and its experience in outsourced hospital revenue cycle management services.