<0> Parallon to Expand Its Client Service Capabilities with the Acquisition of The Outsource Group </0>
Parallon:Roger Rydell, 615-807-8101orAndrea Mitchell, 615-807-8637orThe Outsource Group:Lisa Phillips, 314-692-6508
Parallon, a leading provider of business and operational services to the healthcare industry, today announced that it has agreed to acquire The Outsource Group, a national leader in healthcare revenue cycle management. The two companies’ complementary services will further position Parallon as a flexible, end-to-end source for full-service solutions to hospitals and non-acute care providers, including ambulatory surgery centers, physician practices and alternate care sites across the United States. The deal is expected to close in the third quarter of 2013, and the terms and conditions of the agreement were not disclosed.
Headquartered in St. Louis, Mo., 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.
In making the announcement, Parallon president and CEO, Michael O’Boyle stated, “We are delighted to be teaming up with one of America’s 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 Group’s 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 Parallon’s revenue cycle management organization, the acquisition of The Outsource Group significantly enhances Parallon’s ability to meet the evolving needs of its clients in a rapidly changing healthcare industry landscape.
“Our companies are highly complementary,” noted Ward. “The Outsource Group’s 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.”
O’Boyle and Ward also noted that one of the determining factors in Parallon’s decision to acquire The Outsource Group was the organization’s 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,” noted 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 Parallon’s operational excellence and we couldn’t be more pleased with this opportunity to join forces with a company of Parallon’s caliber.”
Cain Brothers acted as The Outsource Group’s exclusive financial advisor on this transaction.
Headquartered in Franklin, Tenn., Parallon is a leading provider of healthcare business and operational services. Parallon partners with hospitals, healthcare systems and non-acute care providers to improve their business performance through the company’s deep industry knowledge and proven practices in revenue cycle; technology; workforce solutions; consulting; group purchasing and supply chain. Parallon employs more than 22,000 professionals and, together with its HealthTrust affiliate, serves more than 1,400 hospitals and 11,000 non-acute care providers, including ambulatory surgery centers, physician practices and alternate care sites. Visit Parallon’s website at .