Advantedge Healthcare Adds On

Advantedge Healthcare Solutions, a Warren, N.J.-based provider of medical billing services to physician groups, has acquired AHP Billing Services Inc. (AHP), a former division of Anodyne Health. Advantedge Healthcare has raised over $22 million from Founders Equity and Safeguard Scientifics.

AdvantEdge Healthcare Solutions (AHS), one of the nation’s leading providers of medical billing and practice management services, today announced that it has acquired AHP Billing Services, Inc. (AHP), a former division of Anodyne Health. This agreement will expand AHS’ offerings in pathology billing, radiology billing and multi-specialty billing for hospital-based and office-based physicians.

“We are very proud to welcome AHP into the AdvantEdge family,” said David Langsam, President and CEO of AHS. “AHP’s CEO, Lee Larson, and his team have done a great job building a business with a reputation for outstanding service and performance for all of their clients throughout the United States. By leveraging AHP’s specialty expertise and their operations center in Maine, we look forward to expanding our footprint in the Northeast and New England. As part of AHS, the Falmouth team will continue to provide their clients with the level of performance they have come to enjoy, and offer their employees meaningful opportunities for professional growth.”

In October 2009, athenahealth (NASDAQ: ATHN) acquired the business intelligence (BI) portion of AHP’s predecessor company, Anodyne Health Partners, from its investors Brook Venture Partners and Frontier Capital. At the same time, Anodyne’s billing and coding business was spun-out into a separate company called AHP Billing Services, headed by Larson. With robust BI capabilities already in place, AHS recognized that acquiring AHP would create a strong synergy between the two companies and AHS immediately entered into discussions to acquire the company.

“AHS provides a unique opportunity for AHP customers,” said Larson. “Being part of a leading billing company with a significant customer base means our clients will have even more services and resources available to them, including the AHS InfoEdge dashboard and reporting tools. In addition, we can help expand AHS’ offerings in pathology, radiology, and office-based billing solutions to an even greater number of customers.”

As part of the transaction, Larson will remain with AHP, serving as Senior Vice President and head of AHS New England operations. AHP’s 100 employees will also join the AHS team. They will remain in their current location, which will become AHS’ fifth processing location in the U.S.

Today, fewer than 20 percent of physician practices outsource their billing and practice management. AHS’ proprietary software supports an optimized workflow for specialist physician billing and leads to improved revenue for their physician clients. The powerful billing technology runs on IBM System i servers and AHS is an IBM Business Partner for physician billing.

About AHP Billing Services (AHP)

AHP was originally founded as Anodyne Health Partners in 2003 by several Per-Se Technologies executives (Per Se Technologies is now a division of McKesson Corporation). Anodyne Health provided both revenue cycle management, and a business intelligence tool that visualizes billing data. In October 2009, athenahealth (NASDAQ: ATHN) acquired Anodyne Health Partners, and spun-out its outsourced billing and coding business into a separate company called AHP Billing Services, Inc. AHP serves physicians throughout the United States from its operations center in Falmouth, ME.

About AdvantEdge Healthcare Solutions (AHS)

AHS is a leading provider of physician billing and practice management services and software to hospital-based physician groups, other specialty physician practices, and ambulatory surgery centers (ASC’s) throughout the United States. AHS’ state-of-the-art technology efficiently collects financial information and speeds the reimbursement of third-party claims and patient payments, enabling physicians to maximize revenue and decrease their billing and practice management costs, frequently in dramatic ways. The AHS commitment to clients is “More money, faster. Practice financial data, available anytime, anywhere. Regulatory compliance, guaranteed. And, Client First service.” AHS is an IBM Business Partner for physician billing solutions.