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8-K - FORM 8-K - Change Healthcare Holdings, Inc. | g24578e8vk.htm |
EX-10.1 - EX-10.1 - Change Healthcare Holdings, Inc. | g24578exv10w1.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
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Emdeon to Acquire Chamberlin Edmonds to Expand its Technology-
Enabled Services Platform in the Hospital Market
Enabled Services Platform in the Hospital Market
Acquisition to combine comprehensive government program patient eligibility and
enrollment services with Emdeons revenue cycle management suite
NASHVILLE, Tenn. (September 7, 2010) Emdeon Inc. (NYSE: EM), a leading provider of
healthcare revenue and payment cycle management solutions, today announced it has entered into a
definitive agreement to acquire Chamberlin Edmonds & Associates, Inc., a leading provider of
government program eligibility and enrollment services to over 200 acute care facilities in 30
states. Chamberlin Edmonds technology-enabled services assist hospitals in lowering the incidence
of uncompensated care, reducing bad-debt expense and increasing overall cash flow.
Emdeon will acquire Chamberlin Edmonds, a privately held company, for $260 million in cash. The
transaction will be financed through the use of unrestricted cash and borrowings under an amendment
to Emdeons existing credit facility that will be established simultaneously with the closing of
the transaction. In connection with the credit facility amendment, Emdeon has entered into an
incremental $100 million financing commitment with Citigroup Global Markets Inc.
Headquartered in Atlanta, Georgia, Chamberlin Edmonds has a 24-year track record of patient
advocacy and guiding uninsured patients through the complex processes associated with securing
reimbursement from Medicaid, Social Security Disability, state disability, charity care and other
community benefit programs. Chamberlin Edmonds service model includes highly-trained
professionals, such as staff nurses, trained social services personnel and government program
specialists, that are located on-site at a hospital and collaborate closely with the hospitals
revenue cycle team. To support its on-site healthcare representatives, Chamberlin Edmonds utilizes
its regional resolution centers and centralized back office infrastructure to deliver
cost-efficient and comprehensive eligibility services from initial patient referral through the
post-application resolution process.
The acquisition of Chamberlin Edmonds continues Emdeons strategic expansion into
technology-enabled services that drive meaningful value for our customers and make healthcare more
efficient, said George Lazenby, chief executive officer for Emdeon. As government programs
continue to expand under healthcare reform, hospitals will need better tools to lower the rate of
uncompensated care and increase cash flows. The combined company will be able to offer enhanced
revenue cycle services designed to help providers navigate the complex systems related to
government reimbursement.
According to the Congressional Budget Office, healthcare reform is expected to result in Medicaid
volumes growing from 39 to 55 million eligible individuals by 2014. These Medicaid volume increases
will likely impact providers because the amount of uncompensated care provided to low income or
unemployed patients is greatly affected by the amount of state Medicaid funding. By integrating
Emdeons revenue cycle management solutions with Chamberlin Edmonds technology-enabled enrollment
services, providers will have an enhanced platform to assist patients in applying for financial
assistance programs and increase the likelihood of receiving payments for services provided to
those patients.
Chamberlin Edmonds has created a scalable technology-enabled service delivery platform that blends
national reach and perspective with local delivery and knowledge, said T. Ulrich Brechbühl,
president and chief executive officer for Chamberlin Edmonds & Associates. By joining Emdeon, we
are significantly better
positioned to offer the full suite of tools, technologies, services and expertise required to build
an optimized eligibility process, from screening through enrollment and cash recovery, to hospitals
nationwide.
For the six-months ended June 30, 2010, Chamberlin Edmonds revenue was approximately $46.3
million. The acquisition is subject to customary closing conditions, including expiration or early
termination of the waiting period under the Hart-Scott-Rodino Act, and is expected to close in the
fourth quarter of 2010.
About Emdeon
Emdeon is a leading provider of revenue and payment cycle management solutions, connecting payers,
providers and patients in the U.S. healthcare system. Emdeons product and service offerings
integrate and automate key business and administrative functions of its payer and provider
customers throughout the patient encounter. Through the use of Emdeons comprehensive suite of
products and services, which are designed to easily integrate with existing technology
infrastructures, customers are able to improve efficiency, reduce costs, increase cash flow and
more efficiently manage the complex revenue and payment cycle process. For more information, visit
www.emdeon.com.
About Chamberlin Edmonds
Headquartered in Atlanta, Georgia, Chamberlin Edmonds serves as patient advocates and provides
custom-tailored eligibility services to hospitals nationwide. Chamberlin Edmonds comprehensive
services examine a wide spectrum of uninsured and underinsured patients, including inpatient,
outpatient and emergency department cases. The advanced technology of its proprietary web-based
system is built on the experience and expertise of some of the most qualified eligibility and
enrollment professionals in the industry its people. Chamberlin Edmonds has more than 24 years
of experience in eligibility services, with eight regional offices in the U.S. Please visit
www.chamberlinedmonds.com to learn more.
Statements made in this press release that express Emdeons or managements intentions, plans,
beliefs, expectations or predictions of future events are forward-looking statements, which Emdeon
intends to be covered by the safe harbor provisions for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995. These statements often include words such as
may, will, should, believe, expect, anticipate, intend, plan, estimate or similar
expressions. Such statements include statements regarding the timing or the closing of the
transaction; the conditions to closing the transaction and required regulatory approvals; and the
availability and terms of the debt financing. Forward-looking statements also may include
information concerning Emdeons possible or assumed future results of operations, including
descriptions of Emdeons revenues, profitability and outlook and its overall business strategy. You
should not place undue reliance on these statements because they are subject to numerous
uncertainties and factors relating to Emdeons operations and business environment, all of which
are difficult to predict and many of which are beyond Emdeons control. Although Emdeon believes
that these forward-looking statements are based on reasonable assumptions, you should be aware that
many factors could affect Emdeons actual financial results or results of operations and could
cause actual results to differ materially from those in the forward-looking statements, including
the risks discussed in the Risk Factors and Managements Discussion and Analysis of Financial
Condition and Results of Operations sections and elsewhere in Emdeons Annual Report on Form 10-K
for the year ended December 31, 2009, as well as Emdeons periodic and other reports, filed with
the Securities and Exchange Commission.
You should keep in mind that any forward-looking statement made by Emdeon herein, or elsewhere,
speaks only as of the date on which made. Emdeon expressly disclaims any intent, obligation or
undertaking to update or revise any forward-looking statements made herein to reflect any change in
Emdeons expectations with regard thereto or any change in events, conditions or circumstances on
which any such statements are based.
# # #
Contacts:
Emdeon
Media Contact
Amanda Woodhead
Emdeon
Media Contact
Amanda Woodhead
615.932.3863
awoodhead@emdeon.com
www.emdeon.com
awoodhead@emdeon.com
www.emdeon.com
Emdeon
Investor Relations Contact
Tommy Lewis
615.932.3235
tlewis@emdeon.com
www.emdeon.com
Investor Relations Contact
Tommy Lewis
615.932.3235
tlewis@emdeon.com
www.emdeon.com