Cardon Healthcare Network, which is backed by Serent Capital, has combined with Outreach Services. Financial terms were not announced. The new company, headquartered in Woodlands, Texas, will be called Cardon Outreach. The company will provide revenue cycle management services to hospitals.
PRESS RELEASE
Serent Capital, a private equity firm focused on investing in profitable, high-growth businesses, announced today that its portfolio company, Cardon Healthcare Network, has completed a transaction to combine with Outreach Services. The new company will be named Cardon Outreach, and will be headquartered in The Woodlands, Texas.
The core business of both companies is providing revenue cycle management services to hospitals, for the self-pay segment of their patient populations. With this transaction, Cardon Outreach will now serve over 500 hospitals and clinics nationwide, and handle over $10 billion in patient billings annually, making it the largest independent provider in the sector.
Mark Robinson, who will serve as Chief Executive for Cardon Outreach, said “The business logic for this transaction is simple. Cardon and Outreach have strong cultural synergy, sharing a patient-centric view and a common set of values. They have geographically diverse coverage, with few overlapping locations. Both enjoy strong relationships with their clients based on exceptional performance, innovative approaches and a willingness to go the extra mile. Cardon’s industry-leading technology and broader portfolio of services will bring additional value opportunities to Outreach clients. As a combined entity, Cardon Outreach has the strength to deliver the innovative revenue cycle solutions that hospitals need, given the dual challenges of healthcare reform and the struggling economy.”
“We are excited to be partnering with Cardon, a company that I have always admired,” said Greg Moga, founder and President of Outreach Services. “The combination will be good news for Outreach clients, who will benefit from the technology leadership and the broader range of services that Cardon brings to the table. It will also be good news for Outreach employees, who will enjoy the increased opportunities of a larger organization.”
Doug Cardon, who will serve as Chairman of the Board of Cardon Outreach, said “I’ve known Greg Moga for many years, and have a lot of respect for what he has accomplished with Outreach Services. I look forward to working with him on the Board, as we write the next chapter in the Cardon Outreach story together.”
Serent made its original investment in Cardon in January 2011 after an extensive review of the hospital revenue cycle management landscape and Serent provided further capital for the Cardon Outreach transaction. “We are delighted to be instrumental in creating Cardon Outreach, bringing together two of the most respected pioneers in the third party eligibility and hospital revenue recovery industry,” said David Kennedy, co-founder and General Partner of Serent Capital. “We expect consolidation to continue in the industry, as hospitals increasingly look for best in breed technologies, HR processes, and new service capabilities from their revenue cycle management providers. Cardon Outreach’s superb platform positions them extremely well to thrive as that consolidation continues. We are excited about supporting Cardon Outreach as it continues to extend its leadership in the industry.”
About Cardon Healthcare Network
Founded in 1996, Cardon Healthcare Network, LLC partners with hospitals in recovering revenues associated with uninsured, underinsured and unfunded patients. Cardon offers a suite of services and technology solutions designed to aid healthcare facilities avoid costs, recover revenue, reduce operating and capital expenses, increase productivity, develop staff resources, and apply new strategies for revenue cycle management.
About Outreach Services
Founded in 1991, Outreach Services provides uncompensated care management services to hospitals, healthcare systems and their uninsured and underinsured patients. The services offered by Outreach Services, including Medicaid advocacy, third party liability reimbursement, SSI/SSDI advocacy, and billing, make a substantial difference in quality, productivity, cost-effectiveness, and financial return for the hospital.
About Serent Capital
Serent Capital invests in growing businesses that have developed compelling solutions that address their customers’ needs. As those businesses grow and evolve, the opportunities and challenges that they face evolve with it. Principals at Serent Capital have firsthand experienced at capturing those opportunities and navigating the challenges through their experiences as CEOs, strategic advisors, and board members to successful, growing businesses. By bringing its experience and capital to bear, Serent helps growing businesses thrive.
