PE Deals

Collect RX, healthcare-payment-integrity firm, kicks off sales process

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Collect RX, healthcare, private equity, merger, M&A
Photo courtesy of holwichaikawee/iStock/Getty Images.
  • Specializes in out-of-network revenue-cycle services
  • Berkery Noyes offers sell-side advice to Collect RX
  • Founded in 2006 by Chairman Don Greenberg, M.D.

Collect RX, whose services help healthcare providers bolster reimbursements of out-of-network bills, is evaluating potential transactions, Buyouts has learned.

The privately held payment-integrity business launched a sales process a couple weeks ago, sources familiar with the matter said. Both financial buyers and strategics will be in the mix, they said.

CollectRx to date has not raised any outside institutional capital.

The Rockville, Maryland, company generates about $4 million in Ebitda and is growing north of 20 percent year-over-year, one of the sources said.

Berkery Noyes & Co is providing financial advice to Collect RX, sources said.

Collect RX, founded in 2006, helps insurers and healthcare providers improve reimbursement rates and lower costs associated with out-of-network bills. The company also provides services including accounts-receivable recovery, offering its own staff of healthcare-recovery attorneys, and offers information on health insurers’ incentives.

The specialized revenue-cycle-management company works with more than 1,300 surgery centers, physician practices, labs, community- and physician-owned hospitals, behavioral-health facilities and health systems, the website says.

Don Greenberg, M.D., founded Collect RX and is chairman, while John Bartos holds the CEO post.

The larger RCM market in which Collect RX operates remains highly fragmented. Like Collect RX, many companies have become niche-centric, specializing in sectors of the market or points of the payment cycle.

Another healthcare RCM provider on the auction block is Bolder Healthcare Solutions, backed by an Edgewater Funds affiliate, Buyouts reported in November. William Blair is advising on the sponsor-driven process.

There are a handful of industry behemoths, including recently merged Navicure–ZirMed, which is backed by Boston’s Bain Capital. Other sizable players include Pamplona Capital Management’s nThrive and Change Healthcare, whose owners include McKesson, Blackstone and Hellman & Friedman.

Representatives of Collect RX and Berkery Noyes declined to comment.

Action item: Learn more about CollectRX here: http://collectrx.com/

Photo courtesy of holwichaikawee/iStock/Getty Images