Waud Capital Partners has acquired Revenue Cycle Solutions, giving the Chicago-based private equity firm a platform to build a patient account resolution company serving hospitals, hospital-based physician groups and other healthcare facilities.
RCS, also based in Chicago, has partnered with more than 100 hospitals across the country and provides a wide range of account resolution services, including early-out self-pay, third-party insurance and aged receivables recovery.
“Hospitals face increasing profit and process challenges with the continuing shift toward higher patient-responsibility for co-payments and deductibles," said David Neighbours, a partner at WCP. “Given these challenges, healthcare revenue cycle improvement is a necessity, and our platform is focused on providing unique business process outsourcing solutions.”
The deal brings two veteran healthcare executives to RCS as well. Mike Jacoutot will be the company's chief executive officer, while Mary Ann McLaughlin will serve as chief operating officer.
“We analyzed a number of investment opportunities in the multi-billion dollar hospital account resolution market, and we were attracted to RCS because it gives us the immediate opportunity to expand the company’s geographic footprint and add additional service offerings through both organic and acquisition growth,” said Eric Gordon, vice president at WCP.