Firstsource Solutions jumped 5.43% to Rs 79.65 after the company said it acquired PatientMatters, a healthcare Revenue Cycle Management (RCM) solutions provider.
The transaction was executed and closed on 22 December 2020 and total cost of the said acquisition is $13 million. A Century Equity Partners portfolio company, PatientMatters is headquartered in Orlando, Florida with operations across the US. It unifies disparate registration, bill estimation, and financial services with intelligent workflows and eligibility services, improving revenue realization for hospitals.
The acquisition complements Firstsource's provider business on two dimensions as it strengthens the company's presence in large markets like Texas and New York while adding new capabilities of pre-authorization and patient bill estimation at the front-end of the RCM cycle.
Powered by its Digital First, Digital Now strategy, Firstsource helps the nation's leading healthcare providers and health plans reimagine their operations with digitally enabled business process solutions.
In tandem with the acquisition, Firstsource plans to consolidate its Healthcare Provider brands MedAssist and PatientMatters, under its enterprise umbrella. The move reflects the unified value proposition offered across all Firstsource solutions and services and reinforces the company's brand as a global business process management (BPM) services leader.
Dr. Sanjiv Goenka, chairman, Firstsource Solutions and RP-Sanjiv Goenka Group said, "The Healthcare space in the US is ripe for digital disruption - a trend further accelerated by the pandemic. Firstsource already has a large presence in the US healthcare market, helping Providers and Health Plans streamline their operations with Intelligent Automation and emerging technologies for enhanced competitiveness. This strategic acquisition magnifies our strong patient-centric revenue management capabilities and creates adjacent areas for growth for us. We welcome the PatientMatters team to the Firstsource family and look forward to serving the combined client base."
Firstsource Solutions is engaged in the business of providing customer management services like contact center, transaction processing and debt collection services including revenue cycle management in the healthcare industry.
The company's consolidated net profit jumped 56.2% to Rs 105.29 crore on a 21.3% rise in net sales to Rs 1,178.33 crore in Q2 FY21 over Q2 FY20.
On a year-to-date (YTD) basis, the stock has zoomed 94.03% while the benchmark S&P BSE Sensex has added 12.30% during the same period.
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