Nashville, Tenn.-based Emdeon Inc., a provider of healthcare revenue and payment cycle management solutions, today announced the acquisition of Chapin Revenue Cycle Management, LLC. Based in Tampa, Fla., Chapin is a technology-enabled provider of hospital-based revenue cycle services including accounts receivable management, medical denials, appeals and collection improvement initiatives.
Chapin utilizes a proprietary contract management system built for rapid and precise calculations of reimbursement amounts from all types of healthcare payers and contract arrangements. By leveraging this technology and Chapin's experience in outsourced hospital revenue cycle management services, Emdeon plans to offer an added service layer designed to enhance the financial performance of institutional healthcare providers across its network.
Consideration for the transaction was $18.9 million paid at closing, comprised of $16.2 million in cash and $2.7 million in restricted shares of Emdeon Class A common stock, plus additional contingent payments totaling up to $8.1 million to be paid in additional restricted shares of Emdeon Class A common stock. The contingent payments will be paid based upon the attainment of financial performance objectives of the acquired business from the closing through the end of 2012.