Riverside Partners has acquired Franklin, Tennessee-based Medical Reimbursement of America, a provider of specialty reimbursement services for hospital revenue cycle departments. No financial terms were disclosed. Houlihan Lokey served as financial adviser to MRA on the transaction.
FRANKLIN, Tenn., Feb. 14, 2017 /PRNewswire/ — Medical Reimbursement of America (MRA) announced today that it has been acquired by Riverside Partners, a Boston-based private equity firm. Headquartered in Franklin, TN, MRA is a recognized leader in the rapidly growing field of specialty reimbursement services for hospital revenue cycle departments. MRA leverages proprietary technology to help hospitals and health systems resolve complex motor vehicle and workers’ compensation accident claims. Additionally, through its Payment Integrity division based in Ft. Lauderdale, FL, MRA provides underpayment identification and recovery services that ensure Medicare and Managed Care claims are paid accurately and fully.
“I could not be more excited about the future of MRA as a result of this investment by Riverside Partners,” said Bobby Rolfe, MRA’s CEO for the past 4 years. “Our team’s customer-first attitude is the cornerstone of our success, and Riverside Partners’ philosophy of empowering and supporting successful teams will enable each of our employees to continue their passion for serving our hospital customers.” In conjunction with the transaction, Mr. Rolfe and MRA President Lyle Beasley will remain involved with the company and continue their investment in MRA. Mr. Rolfe will serve as a consultant to MRA and Mr. Beasley will continue serving on the company’s board of directors.
Max Osofsky, General Partner at Riverside Partners, said, “We are extremely excited to add this industry leader to our portfolio and plan to invest in the company to accelerate its growth. With pressure on reimbursement levels accelerating from both government and managed care payers, hospital operating margins are under attack. MRA helps hospitals enhance billing compliance and improve financial performance in this difficult environment by focusing expert resources on often overlooked and undermanaged areas of the revenue cycle. Bobby and Lyle have built a strong, successful team at MRA, and we are excited to continue backing this team.”
Osofsky announced that Julie Klapstein, a member of Riverside Partners’ Healthcare Advisory Board and Founding CEO of Availity will serve as CEO of MRA. “Julie is a strong leader bringing more than 30 years of experience in senior healthcare positions. She has deep experience in the revenue cycle sector and is well positioned to take over the leadership of MRA. Among Julie’s many accomplishments, she built Availity from an idea into a leading provider of health information solutions, now serving over 900,000 hospitals, health plans and other care providers,” said Mr. Osofsky.
“MRA’s identification and collection of previously unidentified sources of revenue has solidified its value proposition for hospital CFOs,” said Ms. Klapstein. “I am proud to carry on serving a blue-chip customer base and look forward to working with Bobby and Lyle to support one of the most outstanding teams I have encountered in the revenue cycle sector.”
MRA’s Peer Reviewed by HFMA® solutions are the result of nearly 19 years of focus on specialty reimbursement niches, particularly accident-related medical claims. MRA’s proprietary technology platform enables an expert team of 250+ specialists to manage coordination of benefits and the related billing process, delivering improved financial performance, increased patient satisfaction, and enhanced billing compliance to leading health systems nationwide.
Choate Hall & Stewart acted as legal advisor to Riverside Partners in this transaction. Sherrard Roe Voigt Harbison acted as legal advisor to MRA, and Houlihan Lokey acted as the exclusive financial advisor to Medical Reimbursements of America.
Medical Reimbursements of America (MRA) provides specialty reimbursement solutions that identify and recover additional revenue for hospitals and health systems nationwide. MRA’s AcciClaim™ solution, led by the industry’s leading team of specialized attorneys, revenue cycle experts and account resolution specialists, delivers improved revenue, increased patient satisfaction, and enhanced billing compliance from complex claims related to motor vehicle accidents and workers’ compensation injuries. In addition, MRA’s Payment Integrity solution provides underpayment identification and recovery services from both Medicare and Managed Care claims. Founded in 1999 and based in Franklin, Tennessee, MRA proudly serves as a definitive source for specialty reimbursement services for more than 500 hospitals and health systems nationwide. For more information, please visit www.mraresults.com.
About Riverside Partners
Founded in 1989, Riverside Partners is a middle market private equity firm currently investing out of its fifth fund. The fund focuses on growth-oriented companies primarily in the healthcare and technology industries. Riverside Partners is particularly experienced at partnering with founders, owners and management teams and it brings substantial domain expertise and operating experience to its portfolio companies. Today, Riverside Partners manages about $850 million of equity capital and seeks to make investments in companies with revenues between $20 and $200 million and with $5-$25 million of EBITDA. For more information, please visit www.riversidepartners.com.