Precyse Solutions, an industry leader in outsourced health information management (HIM) services, announced today that it has signed an agreement to acquire the Health Information Services Division of QuadraMed Corporation. The transaction is expected to close by year-end. Formed in 1998 as the result of the acquisition of three major HIM companies, Precyse will pay $14.3 million to acquire the HIM services group. The combined company will operate under the Precyse Solutions name.
QuadraMed's HIM Services Division, headquartered in Englewood, CO, specializes in coding compliance and education services, HIM consulting and interim management, compliance and regulatory services, and HIM departmental outsourcing. With contracts with more than more than 240 health care organizations throughout the U.S., QuadraMed's services have focused primarily on the Western U.S., whereas Precyse's services have been principally in the Eastern U.S. The combination of the two businesses will create a health information management services company of approximately 585 employees, resulting in Precyse Solutions becoming one of the largest outsourced HIM providers in the country.
The combined firms will have staff of more than 130 credentialed medical coders and 50 HIM professionals. The Company believes that the combined number of coding professionals will make Precyse the largest employer of these professionals in the country.
Besides the emergence of a national leader in the space that has been highly fragmented, and labor-intensive with limited technology investments, Precyse believes the benefits to its clients and prospective customers are numerous. These benefits include:
* A larger national pool of HIM and Coding professionals enabling continued ability to promptly respond to every client's staffing requests
* In every case, Precyse will attempt to assign staff to its clients with professionals who are located closest to the client to minimize travel expenses charged to that client
* The presence of a decentralized management structure means that each geographic region is under the control of a professional manager who makes sure that every client's needs are promptly handled and excellent relationships with Precyse's HIM and Coding professionals are created and maintained
* Precyse clients will enjoy the additional benefits of sophisticated HIM product offerings from QuadraMed including coding auditing, coding education, and compliance monitoring services.
* QuadraMed clients will enjoy the additional benefits of Precyse's very comprehensive Oncology Registry service with 50 Certified Tumor Registrars, as well as a national outsourced transcription service currently serving the needs of 40 clients nationwide.
"We are very excited about this opportunity," said Jeff Levitt, chairman and CEO of Precyse Solutions. "QuadraMed is very well known in the outsourced health information management arena for being an innovative, high quality company. This merger will lead to many new and exciting opportunities that will benefit both our customers and employees."