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Riverside Partners adds to healthcare tech M&A with purchase of MRA

Transactions for medical payment service providers include dealmakers such as Equian, HGGC and the Riverside Co.

Private equity firm Riverside Partners has purchased Medical Reimbursement of America (MRA) as healthcare providers seek to operate more efficiently and cost-effectively, driving acquisitions across the medical sector. Financial terms of the deal were not disclosed

MRA is a Franklin, Tennessee-based provider or payment reimbursement services for the healthcare and medical industry, a growing field for the hospital revenue cycle departments. The target’s technology is used to help hospitals and health systems process motor vehicle and workers’ compensation accident claims. MRA’s more than 250-member staff works to manage benefit claims and its related billing compliance process. The target operates using two flagship brands, AcciClaim and Integrity.

“With pressure on reimbursement levels accelerating from both government and managed care payers, hospital operating margins are under attack,” states Max Osofsky, a general partner at Riverside Partners.  MRA helps hospitals “by focusing expert resources on often overlooked and undermanaged areas of the revenue cycle.”

Riverside Partners is a Boston-based private equity firm founded in 1989. The middle-market PE firm is currently investing out of its fifth fund, focusing primarily on the healthcare and technology sectors. Riverside Partners backs companies with revenues between $20 million and $200 million.

The transaction for MRA isn’t the only deal for medical reimbursement companies. Other related deals include: private equity firm HGGC completing a majority investment in London-based Davies Group; the Riverside Co.’s investment in Medical Payment Exchange Inc., a Maryland-based claims management provider to the healthcare industry; and Equian’s acquisition of AfterMath Claim Science Inc., a company that provides post-payment recovery services that aim to eliminate medical claim payment errors through data mining technology. Sherrard Roe Voigt Harbison served as legal counsel to MRA and Houlihan Lokey Inc. (NYSE: HLI) acted as financial adviser. Choate Hall & Stewart LLP served as legal counsel to Riverside Partners.

 

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