Accuro Healthcare Solutions Inc. has filed a registration statement with the Securities and Exchange Commission to sell an initial public offering of stock.
The company hopes to raise as much as $144 million through the stock offering. The filing did not detail the number of shares it expected to sell or the offering price for the stock.
The Dallas-based company sells Internet-based solutions and services to hospitals and other healthcare providers to help them manage patient registration, billing collection and reimbursement. In its filing, the company said it has about 800 hospitals and about 350 ancillary healthcare providers as customers.
The company said its market opportunities appear bright because of the increasing pressures faced by healthcare organizations. Proceeds from the stock offering will be used to obtain additional capital and repay debt under a credit facility due in July 2013, as well as for working capital and other general corporate purposes.
Since 2004, Accuro Healthcare has made five acquisitions to expand its business. On Jan. 1, 2006, it acquired CodeCorrect LLC, which offers a comprehensive set of Internet-based coding tools. On Oct. 1, 2005, it completed the acquisition of Innovative Health Holdings, which offers solutions for coding, compliance and information management.
"The persistent and growing complexities in the healthcare industry, particularly with respect to reimbursement, along with the ill-equipped manual processes or legacy installed software systems currently being used by many healthcare providers, present a compelling opportunity to enable healthcare providers to improve their financial performance by simplifying the complexities of the revenue cycle," the filing said.
Company officials estimate the market for revenue cycle management offerings among the nation's 5,700 acute care hospitals and 8,000 ancillary providers at about $4 billion annually.
The company noted that it has posted a loss of $5 million in operations for the year ended December 31, 2006, following losses of $1 million each the previous two fiscal years. The company reported a loss of $49.9 million for the nine months ended Sept. 30, 2007, due primarily to a $50.6 million charge in the period.
The company said its stock will trade on the Nasdaq Global Market under the symbol ACCU. The company said it has no plans to pay a dividend on the stock.
Underwriters for the offering include Citi, Piper Jaffray, William Blair & Co. and Jefferies & Company.