Medical Collection Agency Acquisitions Help Software Developer Sell Product

Published: 2009-06-22 12:17:35
Author: Cynthia Wilson | InsideARM | May 29, 2009

Five years ago, many newcomers to the medical receivables management and collections space thought they could be successful by applying the strategies that worked well in retail and credit card receivables management to healthcare ARM work.

iVolution Medical Systems, a Westhampton, NY-based health care systems firm, is taking a different approach. The four year old company, started by former Wall Street consultants to the health care industry, entered the medical receivables space by acquiring experienced billing and collections companies. First there was Professional Healthcare Billing Services (PHB) of Palm Springs, California in March, and then Continental Collection Services of New York, earlier this month (“iVolution Medical Systems Acquires Continental Collection Services,” May 13).

Despite the regulatory uncertainty surrounding the health care industry, iVolution co-chair and chief financial officer Vince Pipia told insideARM that the medical billing and collection industry is ripe for consolidation.  He said iVolution, which has about 15 employees and under $2 million in annual sales, hopes to grow the business by buying more companies with the help of Universal Capital Management, a publicly traded business development firm.  

“We think (medical billing and collections businesses) are all good cash generators, and they have a coveted relationship with physicians,” Pipia said.

Specifically, it’s that relationship that Pipia wants to capitalize on to provide integrated billing and collections services to health care providers as they transition to health care information systems.  Electronic medical records, billing, e-prescriptions and instant messaging are among the solutions offered by the company.
 
“Billers are the gatekeepers that control the doctors’ money,” Pipia said. “Being responsible for the transaction, we can introduce technology to them. Our goal is to build and grow medical billing to cross-sell technology.”

In the year since iVolution introduced its products to the market, Pipia said some of iVolution’s technology is gaining traction among its pediatricians. Likewise, iVolution’s billing and collections clients are enjoying the benefits of its free instant message technology.

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