Parallon, a healthcare industry business and operational services provider, announced this week that it will acquire The Outsource Group, a healthcare revenue cycle management firm.
The deal is expected to close in the third quarter. Terms and conditions of the agreement were not disclosed. The companies services will further position Parallon as an end-to-end source for full-service services to hospitals and non-acute care providers, including ambulatory surgery centers, physician practices and alternate care sites across the U.S.
Based in St. Louis, The Outsource Group specializes in hospital business office outsourcing, insurance billing and follow up, third-party liability, primary and secondary bad debt collections, Medicaid eligibility, early out/self-pay services, onsite financial counseling and physician billing and follow up. Its clients include hospitals, private physician practices and hospital-based physician practices.
Parallon president and CEO, Michael OBoyle stated, We are delighted to be teaming up with one of Americas premier revenue cycle management organizations that has more than 30 years of experience in the healthcare industry. Its growth over the past eight years has been impressive and is a testament to The Outsource Groups exemplary service capabilities. We are looking forward to putting our combined strength to work for our collective client base.
According to Eric Ward, president of Parallons revenue cycle management organization, the acquisition enhances Parallons ability to meet the evolving needs of its clients in a rapidly changing healthcare industry landscape.
Our companies are highly complementary, said Ward. The Outsource Groups service offerings fit nicely within the array of revenue cycle services currently provided by Parallon. This acquisition allows Parallon to offer a complete and flexible spectrum of solutions, on either a bundled or individual service basis. Not only does this provide better overall service to individual clients, it also allows us to capitalize on synergies within our broader, current client base.
OBoyle and Ward also noted that one of the determining factors in Parallons decision to acquire The Outsource Group was the organizations outstanding management team as well as a skilled and professional workforce. Led by CEO Michael DiMarco, The Outsource Group has grown substantially over the past eight years through both acquisitions and strong organic growth.
Our strategy over time has been to seek well-aligned, best-in-class companies to expand our service capabilities in markets across the United States, said DiMarco. We have always provided our clients with the resources of a large company coupled with the individualized services and flexibility of a smaller firm. We believe that our commitment to state-of-the-art technology and processes is highly consistent with Parallons operational excellence and we couldnt be more pleased with this opportunity to join forces with a company of Parallons caliber.
Cain Brothers acted as The Outsource Groups exclusive financial advisor on this transaction.