MedData, a MEDNAX company and a national provider of technology-enabled healthcare services, has agreed to acquire Cardon Outreach, one of the nation's largest providers of integrated revenue cycle management services.
Cardon Outreach, based in The Woodlands, Texas, offers specialized eligibility assistance, accounts receivable recovery services, third party liability, workers' compensation, social security disability, denials management and appeals, and patient financing/early out programs to more than 800 hospitals and other healthcare facilities in 46 states, according to a news release.
"Cardon Outreach is a clear market leader of revenue cycle management services," Ann Barnes, president and CEO of MedData, said in a prepared statement. "As reimbursement models evolve to reflect a more value-based, consumer friendly healthcare system, so do our clients' needs for innovative revenue cycle management solutions. Our combined capabilities will enhance MedData's ability to provide superior patient-focused services with an even richer set of offerings to reduce costs and optimize clients' operations.
Roger J. Medel, MD, CEO of MEDNAX, also expressed excitement over the deal, calling the transaction "another important step forward in the strategic development of our integrated management services capability."
The purchase consideration for the transaction was $400 million. Based on Cardon Outreach's current financial results, MEDNAX anticipates that the acquisition will add an initial $0.06 in annualized diluted earnings per share, and $0.14 in annualized adjusted earnings per share.
The transaction is subject to customary closing conditions, including regulatory approvals and is expected to close within the next 30 days.
Once the deal closes, the combined companies will have nearly 2,000 employees. Each entity will retain its brand and all current facilities will remain in place as they are now, the companies said.
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