Company Description
MedData, Inc. (MedData) provides fully outsourced, technology-enabled revenue cycle management services, including highly unique, patient-centric capabilities that address several critical customer pain-points related to reimbursement, patient satisfaction, and provider/patient communications. The Company primarily serves hospital-based physician practices, large physician staffing companies, and hospitals across a wide range of clinical specialties.
MedData’s unified technology platform and flexible, multi-shore delivery model provide market-leading collection rates and profitability levels that far exceed that of the Company’s competitors.
Objectives
MedData and the Company’s private equity sponsor, Baird Capital engaged TripleTree to evaluate its strategic alternatives, including over-the-wall interest received from MEDNAX (NYSE: MD), a national provider of newborn, anesthesia, maternal-fetal, and other pediatric subspecialty care physician services.
Results
Upon receiving qualified, pre-emptive interest from MEDNAX, the two organizations executed a Letter of Intent (LOI) in early June 2014 and promptly engaged in comprehensive due diligence under exclusivity. To the extent activities did not advance along the lines of an agreed to timetable, a broad M&A process was planned for the fall of 2014 to capitalize on the Company’s rapid growth, scale, and scarcity value as a leading provider of revenue cycle management services.
The MedData acquisition satisfies an important strategic objective for MEDNAX’s leadership team as it will serve as a management services platform in support of facilities and physician groups beyond MEDNAX’s existing footprint. The combination will also allow MEDNAX to expand their existing offerings and build new relationships with both hospitals and physicians.
Following a rapid ten week process the Company and Baird Capital realized an extremely favorable outcome in the outsourced revenue cycle management segment.