Overview:
- Receivables Management Partners (formerly known as Collection Associates) is a healthcare revenue cycle management company
- The Company specializes in managing accounts receivables collections for hospitals and physician groups throughout the Midwest
- We identified revenue cycle management as a compelling outsourced business service niche and found the Company through a business broker
Investment Thesis/RAMP Value Creation:
- As healthcare organizations continue to outsource non-core business functions and seek ways to reduce costs, we saw an opportunity to accelerate organic growth and add service capabilities through add-on acquisitions
- Execute a buy-and-build strategy to create a leading regional player in the fragmented healthcare revenue cycle management industry
- Collection Associates was an ideal platform to start from due to its deployment of leading technology, high-touch customer service, long-standing customer relationships, recurring revenue and scalable business model
- We leveraged our industry knowledge and proprietary sourcing capabilities to execute an acquisition strategy, closing five add-ons during our hold period
- We successfully integrated the businesses onto one technology platform, improved employee training and collections processes, and instituted cross-selling initiatives to grow the customer base organically
- We executed several key hires, including the COO in 2009, helping the Company grow from a small local company with one office and 41 employees to be the largest revenue cycle management business in the Midwest, with over 260 employees in five offices across seven states
- With each acquisition, the Company increased its geographic footprint, expanded its service offering, and upgraded its technology and systems
Exit:
- We successfully sold RMP to a financial sponsor in Q2 2012
