Passport Health Buys Nebo Systems

Passport Health Communications Inc., a Franklin, Tenn.-based provider of payer and patient information technology services for healthcare providers, has acquired Nebo Systems Inc., an Oakbrook Terrace, Ill.-based provider of revenue cycle management and claims consulting services. No financial terms were disclosed. Passport has raised over $90 million in private funding, including a $70 million recap in April 2006 recap led by Primus Capital Funds.

 

PRESS RELEASE

 

Passport Health Communications, Inc., a health care technology company based in Tenn., has acquired fellow revenue cycle management firm Nebo Systems, Inc., Oakbrook Terrace, Ill., along with its claims consulting and outsourcing subsidiary, Cosand Group. Details of the transaction, which closed in early May, were not disclosed.

The combined organization boasts one of the most comprehensive suites of products and services in the revenue cycle management sector. Passport will add to its already extensive array of administrative and financial solutions with Nebo's established claims management services, scripting expertise and other real-time, integrated tools.

Nebo's reputation for exceptional customer relationship building coupled with Passport's national footprint bodes well for the joint company's long-term growth.

Jim Lackey, Passport chairman and CEO, said, “The addition of Nebo's solutions and the talented people behind them will allow Passport to offer our clients a broader and deeper scope of services. By combining our unique but complementary strengths we will be better positioned in the marketplace.”

Before the acquisition Passport was already among the leading U.S. companies providing revenue cycle management technology and services. Founded in 1996, the nearly 200-person company works with more than 4,300 health care providers across the country. Its services include patient insurance eligibility verification, address verification, medical necessity compliance and credit card processing, among others.

Nebo, founded in 1989, traditionally has had a heavy claims emphasis but has also offered insurance eligibility verification, address verification and other services typically used in the front end of hospitals and physician offices. The company has a reputation for longstanding relationships with its approximately 2,500 clients, the large majority of whom are in Illinois. Nebo employs about 100 people.

“When we started Nebo we had a mission