Emdeon wants to make the servicing of medical accounts a little easier. The company's offerings are designed to simplify and streamline health care billing for insurance companies, health care systems, and doctors. Emdeon offers discounted office supplies online, automated billing and document mailing services, and insurance card printing, and has products specifically for dental and pharmaceutical offices. It processes more than 5 billion health care-related transactions each year. It also owns Chamberlin Edmonds & Associates, a provider of revenue recovery assistance to healthcare clients. Emdeon was acquired by The Blackstone Group in 2011.
Blackstone acquired approximately 70% of Emdeon from General Atlantic and Hellman & Friedman for about $3 billion, including $936 million in long-term debt. Emdeon was attractive to Blackstone after it reported $19.5 million in net income on $1 billion in revenue in 2010; its steady revenue model enticed Blackstone. Hellman & Friedman retained a minority stake in Emdeon. The company's previous ownership change was the result of a 2009 IPO, and Emdeon began trading on the NYSE. It raised some $367 million from the offering, a much lower figure than the $465 million it projected when the deal was announced the previous year.
Emdeon has used the IPO proceeds to expand its portfolio of product and offerings through acquisitions. It purchased Chamberlin Edmonds & Associates, a provider of government program eligibility and enrollment services to healthcare facilities, in 2010. The deal grew Emdeon's revenue cycle management solutions for the hospital market. To boost its ability to process virtually all electronic patient and third-party healthcare payments, Emdeon in 2010 purchased FutureVision Technologies, which specializes in electronic data conversion. The move allows Emdeon to automate 100% of its provider customers' paper and electronic payment postings.
The previous year the company acquired The Sentinel Group, a healthcare fraud and abuse management services concern, from Optimal Business Services. The purchase expanded Emdeon's ability to help identify potential financial risks earlier in the claims administration process. Also in 2009 Emdeon bought eRx Network, a provider of electronic pharmacy claims management and services whose clients include Medicare and Medicaid.
The private equity firms General Atlantic and Hellman & Friedman purchased Emdeon from HLTH for $575 million in 2008. HLTH shed units as it combined with WebMD. – less