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CRP in the News
January 2009

 


Revenue Cycle Solutions, Inc. Acquires & Merges with CashRetriever Systems, Inc.

WESTCHESTER, IL - January 7th, 2009 - Revenue Cycle Solutions, Inc. (“RCS”), headquartered in the Chicago, Illinois-areas, announced it has completed the purchase of Birmingham, Alabama-based CashRetriever Systems, Inc. (“CSI”). RCS and CSI will merge its operations to form a new combined business under the name of RCS. CSI is to contribute about $10 million of annual revenue to RCS. It has operating centers in Birmingham, Alabama and Tyler, Texas.

RCS and CSI are leading providers of accounts receivable management services for hospitals and other healthcare providers throughout the United States. With proprietary technology, tools and processes, both companies specialize in follow-up of patient liability and resolution of small insurance claims for hospitals. The combined business will have over 200 associates and serves over 150 hospital facilities.

Commenting on the transaction, C. Jeff Pan, RCS’ CEO, said “this acquisition will not only enhance our ability to serve our clients and their patients nationally as well as maintain our high standard of patient experience, but also strengthen our management team with the addition of CSI’s Chairman & Founder, Don Payne, and his team of talented professionals.”

"Data from head-to-head competitions show that RCS collects 33% more cash than their competitors, which increases the hospital's bottom line by 1/2 to 1% of the hospital's annual revenue," added Lalande. "We are impressed by the accomplishments of this team since inception three years ago, and by how quickly hospitals are adopting RCS as their solution for small-balance receivables."

"RCS and CSI are aligned in our focus around sales success and operating excellence. With CSI’s proprietary service offerings such as the Attorney Intervention Group and Transaction & Code Set Solutions, we continue to offer innovative solutions to meet and exceed our client’s expectations,” Nick DiGiovanni, Managing Partner & Founder of RCS, added.

"Both companies are keen on using leading technology applications linked to business processes, resources and solutions. In addition, the RCS management team has a well-deserved reputation of commitment to its clients, associates and communities, and we are pleased to be joining such an outstanding group of professionals,” Payne said. Payne has been appointed as Chief Operating Officer of the combined RCS.

In conjunction with the CSI acquisition, RCS has completed a round of sub-debt funding provided by Capital Resource Partners (“CRP”), headquartered in Boston, Massachusetts. CRP, a leading private equity firm specializes in providing debt and equity capital to middle market companies, has over $1.1 billion under management. RCS’ principal shareholder is Austin Ventures, a private equity firm with over $3.1 billion under management. “It not only validates our strategy of consolidation, expanding products and technology, but also secures the company’s success in the future. Additionally, having institutional investors like Austin Ventures and CRP definitely separates us from our peer group,” Pan said.

 

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United Country Auction Services & Colliers Form Alliance

January 8, 2009 - The Kansas City Business Journal - United Country Auction Services, based in Kansas City, has aligned with Colliers International to provide accelerated transaction services to commercial real estate clients, the companies said Thursday.

United Country Auction Services is a division of United Country Real Estate Inc., which has headquarters at 2820 N.W. Barry Road. Financial terms of what was called “a strategic alliance” with Colliers International were not disclosed.

According to a release Thursday from the parties, accelerated marketing of commercial real estate involves setting a specific date for the sale of an asset and completing a saturation marketing effort prior to that date. Accelerated marketing events generally are completed through an auction or sealed-bid process.

"It’s likely that a large number of commercial assets nationwide will need to be sold in the next 12 months, and auctions are an ideal solution when seller requirements dictate, ...” Patrick Duffy, chairman of Colliers International’s National Retail Group, said in the release. “We believe combining the resources of our two organizations creates a unique opportunity for clients to realize current market value in a predictable time frame, so they can clean out their balance sheets, adjust their commercial real estate portfolios and turn their attention back to their core business.”

Colliers International is a global affiliation of independently owned commercial real estate firms with 11,000 employees in 293 offices in 61 countries.

United Country Real Estate is the largest integrated real estate and auction company in the United States and the only national franchise system specializing in small rural towns and cities.

"With 675 offices, 4,000 agents and more than 140 dedicated, experienced auction professionals, United Country brings the support platform, accelerated marketing and auction expertise to this effort,” Mike Jones, president of United Country Auction Services, said in the release.

While auctions have been utilized routinely for unique luxury properties, farm and ranch land, fine art and collector automobiles, their use in commercial real estate transactions waned following the Resolution Trust Corp. disposition market of the late 1980s and early 1990s. In recent years, however, the expediency and effectiveness of this sales and marketing method has reignited the popularity of auctions in commercial real estate sales.

In 2007, $15.7 billion of commercial and industrial real estate was sold via the auction method of marketing, the release said.

 

 

 

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