01/03/2006
BOSTON, MA, – Parthenon Capital, a private equity firm with offices in Boston and San Francisco, announced today that it completed an investment in Medical Consultants, Inc. (MCI), a leading provider of billing services to healthcare providers. Proceeds from the transaction were used to repurchase shares from certain former shareholders and to provide the Company with growth capital to pursue new growth initiatives. Following the transaction, the Company’s Chief Executive Officer Ken Goodin, the senior management team and affiliates of Parthenon Capital will own 100% of the Company.
Medical Consultants, Inc. is the largest independent provider of medical billing and coding services to emergency room physician groups in the United States. The Company provides a full outsourced billing solution, including data capture, transcription, chart coding, bill generation, bill submission, payment processing, collections and practice management services. MCI’s full billing solution enables its customers, primarily independent physician groups or larger physician staffing companies, to outsource their entire back-office billing function. The Company’s proprietary technology systems allow it to increasingly receive, process and submit records electronically and on a centralized basis. The Company’s operations and executive management team are based in Oklahoma City, Oklahoma.
MCI will continue to be led by the current management team, headed by Chief Executive Officer Ken Goodin. This senior management team has over 80 years of collective experience in emergency medicine billing. About the transaction, Mr. Goodin said “Our ambition is to continue doing what we have done for more than two decades…to deliver the highest quality services available in the industry and to forge new and strategic client relationships in a controlled fashion. In addition, we will continue to invest heavily in technology and people in order to remain an industry leader in customer service and quality. We are excited to have Parthenon Capital as our partner and look forward to their help in achieving these goals.”
David Ament, a Partner at Parthenon Capital who is involved in the firm’s healthcare and business services investments commented, “We have had the opportunity to work with some of the most innovative companies in the hospital and physician outsourcing industry and we are very excited to now have the opportunity to partner with Ken Goodin and the team at Medical Consultants. We believe there are significant opportunities for middle market companies to bring business solutions to the healthcare sector and are excited about the next phase of Medical Consultant’s growth.”
Medical Consultants, Inc., founded in 1983, provides comprehensive billing services for hospital-based emergency physicians and other providers including independent Emergency Physician Groups, Hospitals, Radiologists, Pathologists and other specialty physician groups. Medical Consultants maintains its own proprietary billing and claims management software and is a leading submitter of electronic insurance claims. The company avoids the middleman whenever possible and is directly connected to all major third party payers including Medicare, Medicaid, Blue Cross, Blue Shield, Tricare and more. The Company’s commitment to technology improves cash flow while minimizing error for the physician groups it serves. Medical Consultants continues to set the standard for customer service, information, management reporting, technology and overall performance. For more information, visit www.epbs.com.
Parthenon Capital is a private equity firm with offices in Boston and San Francisco and over $1.1 billion of capital under management. With a staff of 47 people nation wide, Parthenon focuses on providing strategic resources and capital to middle-market companies for acquisition and internal growth strategies. Parthenon provides equity and sub-debt capital to companies with revenues between $50 million – $500 million. The firm invests in a wide variety of industries with a particular expertise in Business and Financial Services, Healthcare, Value-Added Distribution, Niche Manufacturing and Consumer Products. For more information, visit www.parthenoncapital.com.