Tegria, an innovative company launched by Providence in October 2020 to provide next-generation technologies and services to the healthcare sector, has announced the acquisition of Colburn Hill Group, one of the healthcare industry’s leading developers of analytically-driven robotic process automation (RPA) technologies for revenue cycle management (RCM). A centerpiece of the deal is Colburn Hill’s proprietary Ops Center RCM platform, which has earned praise from customers and industry analysts for its superior ease of use, reliability, and cost effectiveness. Cascadia Capital has served as the ongoing buy-side advisor to Tegria and Providence over the last several years.
“Colburn Hill Group has built an enthusiastic following among its customers by delivering intuitive solutions for their most difficult RCM challenges,” said Lincoln Popp, managing director of Tegria’s RCM solutions group. “In helping customers navigate denials management, prior authorization, claim status, account resolution, and more, Colburn Hill brings a unique mix of experience in revenue cycle operations and deep expertise in technology. The power of this combination makes them a great fit for Tegria. We’re excited to scale Ops Center technologies and services to meet the RCM needs of the entire healthcare community.”
The platform enables a dramatic reduction in the effort required to resolve denials by using algorithms to identify the next best step to resolve accounts – and then dispatching tasks to staff or automatically resolving them with RPA technology. This results in lower operational costs, greater yield, and accelerated cash flow.
In its customer work to date, Colburn Hill has helped providers fully automate up to 65% of those steps while funneling and prioritizing the remaining steps for manual or partial automation processing, generating a 1-2% increase in net revenue.
“Rising costs, system inefficiencies and a growing demand for quality care are driving providers to search for new solutions to limit the time and resources required for administrative tasks,” added Kevin Cable, Managing Director of Cascadia Capital’s Healthcare investment banking practice. “In a market where almost a third of hospitals now use three or more Revenue Cycle Management services, we’ve long predicted that efficiency will be maximized through consolidation and integration and we are seeing this drive a significant wave of activity in this hot sector of the healthcare ecosystem. With Colburn Hill, Tegria can offer new breadth and depth to its current end-to-end RCM solutions.”
Cascadia Capital previously described trends driving consolidation and increased market activity in the RCM ecosystem in an industry highlight report on the sector. Read Industry Highlight: Revenue Cycle Management here.
The acquisition of Colburn Hill is the sixth acquisition that Cascadia has supported for Tegria and Providence, having previously provided buy-side advisory services in Tegria’s acquisitions of Cumberland, Acclara Solutions, MediRevv, Bluetree and Navin, Haffty & Associates.
For more information about this transaction, please contact the Cascadia Capital Healthcare team: