Analytix On Demand (AOD), a provider of software-as-a-service business intelligence solutions for healthcare, announced Tuesday that it has acquired Integrated Revenue Management, Inc. (IRM), a national healthcare consulting and education company with a focus on revenue cycle management. The newly created company headquartered in Irvine, Calif., will be called CentraMed.
Vik Torpunuri, the founder and CEO of AOD, has been named CEO of CentraMed, and Kathleen Craig, co-founder and CEO of IRM, will be executive vice president of solutions for the combined company.
"Revenue cycle management has always played a defining and increasingly critical role in the overall financial health and success of hospitals and even more so in the last several years," said Torpunuri in a press release.
"Furthermore, RCM, along with meaningful use of EHRs and other health reforms, are strong indicators that the industry is at a crossroads of a radical transformation. Healthcare administrators will require an intelligence- and data-driven approach to analyze the massive amounts of incoming information to make strategic decisions, uncover opportunities to improve efficiencies, and gain insight and capability to measure care services,” said Torpunuri.
Over the past decade, AOD's business intelligence platform combined with IRM's subject matter expertise has helped IRM clients increase net revenue by approximately $1.1 billion by improving coding, accuracy of reimbursement by payers, charge capture and processes.
"We're very excited about the combined entity, which expands the scale and range of IRM's offerings to clients," stated Jack Duffy, founder and executive vice president of IRM.
"Though we both have built successful businesses, integrating our respective strengths and knowledge made smart sense to better service our valued customers and to capitalize on a growing market opportunity," continued Duffy. "National market research companies estimate the combined BI, consulting and RCM markets will grow from $37 billion to $59 billion by 2014."
Terms of the transaction were not disclosed.