MedAssist

Louisville, Kentucky
www.medassistgroup.com

RoundTable partnered with MedAssist’s owner/founder Michael Shea in 2003, acquiring a 70% stake in the company while existing shareholders retained the remaining 30%. Formed in 1989, the company is a leading provider of outsourced cash cycle management solutions to the healthcare industry, with a comprehensive offering of patient eligibility qualification, accounts receivable management and collections services to improve cash flow for hospital clients.

At the time of RoundTable’s investment, MedAssist was a fast-growing company, but needed help managing and sustaining this growth. Their management team needed strengthening, the company needed to institutionalize certain processes, and also needed to aggressively expand its footprint. Further, one of the company's original financial backers wanted to monetize his ownership. MedAssist is now the nation’s largest outsourced provider of patient eligibility services to hospitals.

Results achieved with RoundTable’s value-added expertise:

• A 4.8x increase in equity value
  RoundTable made several value-added contributions, including strengthening the management team, expanding MedAssist’s geographic footprint, broadening its customer base, and implementation of overall process improvements. MedAssist was sold to Firstsource Solutions Ltd. for $330M, resulting in a 4.8x increase in equity value with a 50% IRR. 
   
• Management team strengthened
  RoundTable helped MedAssist identify and recruit a new CFO, CIO, VP of HR, VP of Sales/Marketing, and VP of Corporate Development. MedAssist was also able to retain executive talent from add-on acquisitions, further strengthening core leadership. 
   
• Broadened customer base
  RoundTable provided access and introductions to hospital CIOs, CEOs and other key decision makers. 
   
• Strategic acquisitions expand geographic footprint
  Through strategic acquisitions of Argent, a large competitor, and Twin Medical, whose West Coast operation became a fully integrated business unit, RoundTable helped MedAssist become the industry leader, expanding its geographic reach into a truly national footprint. 
   
• Improved operating metrics, increase revenue
  RoundTable improved the company’s operating metrics, controls, and discipline. Through standardization and augmentation of key processes and systems, a key efficiency measure dramatically improved. There was also significant expansion of the sales and service organizations and new business generation.