HMS buys AMG-SIU to boost fraud prevention portfolio
HMS has signed a definitive agreement to acquire privately held Allied Management Group (AMG-SIU), a provider of fraud, waste and abuse prevention and detection for healthcare payors, in an all-cash transaction.
The purchase price for the transaction was $26.2 million, comprised of an upfront payment of $13 million and additional estimated future payments valued at $13.2 million contingent upon future financial performance. New York City-based HMS said it expects the transaction to have no impact to earnings per share for the fiscal year ending Dec. 31, and to be accretive to earnings per share in 2011.
HMS coordinates benefits and program integrity services for payors of healthcare services. HMS’ clients include the Department of Health and Human Services' programs in more than 40 states; commercial programs, including commercial plans, employers and Medicaid managed care plans; the Centers for Medicare & Medicaid Services (CMS); and Veterans Administration facilities.
AMG-SIU of Santa Ana, Calif., provides audit and consulting services to both government and commercial healthcare payors. The company's proprietary forensic claim editing system analyzes claim data for patterns of fraud, waste and abuse. The system enables investigators to compare providers, review histories and identify outliers.
AMG employs an in-house special investigation unit to conduct preliminary research, investigations, medical record reviews and pharmacy reviews.
The purchase price for the transaction was $26.2 million, comprised of an upfront payment of $13 million and additional estimated future payments valued at $13.2 million contingent upon future financial performance. New York City-based HMS said it expects the transaction to have no impact to earnings per share for the fiscal year ending Dec. 31, and to be accretive to earnings per share in 2011.
HMS coordinates benefits and program integrity services for payors of healthcare services. HMS’ clients include the Department of Health and Human Services' programs in more than 40 states; commercial programs, including commercial plans, employers and Medicaid managed care plans; the Centers for Medicare & Medicaid Services (CMS); and Veterans Administration facilities.
AMG-SIU of Santa Ana, Calif., provides audit and consulting services to both government and commercial healthcare payors. The company's proprietary forensic claim editing system analyzes claim data for patterns of fraud, waste and abuse. The system enables investigators to compare providers, review histories and identify outliers.
AMG employs an in-house special investigation unit to conduct preliminary research, investigations, medical record reviews and pharmacy reviews.