Navigant Acquires McKinnis Consulting Services to Expand Healthcare Revenue Cycle Management Capabilities
January 04 2016 - 7:00AM
Business Wire
Provides Perspective on 2015 Results and 2016 Financial
Outlook
Navigant (NYSE: NCI) today announced it acquired McKinnis
Consulting Services, a firm that provides revenue cycle assessment,
strategy, and optimization assistance for healthcare providers.
The addition of more than 70 McKinnis consultants complements
Navigant’s existing revenue cycle management (RCM) capabilities as
the healthcare landscape continues to evolve. The acquisition
further enhances Navigant’s position as a leading provider of
end-to-end RCM services, including assessment, electronic health
records (EHR) risk mitigation, and optimization services.
“McKinnis is a market leader in revenue cycle management
services, and now in combination with the breadth and depth of
Navigant’s healthcare team, will be able to provide clients with an
even richer set of offerings to optimize their operations,” said
Julie Howard, Chairman and Chief Executive Officer, Navigant.
Based in Chicago, McKinnis is a market leader and KLAS top-rated
firm that delivers targeted strategies across all major EHR
systems, assisting healthcare providers in achieving sustainable
revenue cycle improvement through an integrated approach involving
technology optimization and operational best practices. McKinnis’
clients range across a variety of provider types, including
academic medical centers, multi-hospital health systems, physician
groups, and community hospitals among others. McKinnis’ leadership
team includes its three founders, James McHugh, Timothy Kinney, and
John Morris, who will become part of the Navigant revenue cycle
leadership team.
“The McKinnis transaction is purpose-driven to expand our RCM
capabilities at a time when health system margins are under greater
scrutiny. McKinnis’ operational and technical expertise,
streamlined methodologies, and outcome-based processes are best in
class,” said David Zito, Managing Director and Navigant healthcare
segment leader. “The McKinnis professionals, which include the
firm’s founders, further complement our ability to help clients
navigate through the disruptions in the healthcare sector.”
“Recent legislation and market drivers have bolstered spending
in the healthcare industry and increased demand for EHR
optimization on the clinical side. Our EHR risk mitigation and
optimization expertise, combined with Navigant’s clinical
expertise, will create timely solutions for healthcare
organizations. We are excited to join forces with Navigant to
design innovative offerings that help our clients realize their
goals,” said James McHugh, Managing Director, McKinnis.
Transaction Overview
Under the terms of the purchase agreement, Navigant paid
approximately $49 million in cash and $3 million in Navigant common
stock at closing, and may pay up to an additional $10 million to
the sellers based on the acquired company’s achievement of certain
post-closing performance targets.
Provides Perspective on 2015 Results and 2016 Financial
Outlook
"The addition of McKinnis is another important step in the
execution of our strategy to grow our premier healthcare business,
both organically and with highly profitable investments,” said
Howard. “With anticipated contributions from McKinnis in 2016, the
Healthcare segment is expected to deliver significant year over
year top line growth, the majority of which we expect to be
organic.”
Howard further commented, “We anticipate that, on a total
company basis, full year 2015 financial results will meet our prior
estimates and as we look to 2016, we believe the demand environment
for many of our practice areas throughout the firm will remain
positive. We anticipate mostly organic RBR and adjusted EBITDA
growth in 2016 in excess of historical trends, with higher adjusted
EBITDA margins and adjusted earnings per share as compared to full
year 2015. We look forward to discussing our 2015 results and 2016
financial outlook in more detail during our annual earnings call in
February.”
About Navigant
Navigant Consulting, Inc. (NYSE: NCI) is an independent
specialized, global professional services firm that combines deep
industry knowledge with technical expertise to enable companies to
defend, protect and create value. With a focus on industries and
clients facing transformational change and significant regulatory
and legal issues, the Firm serves clients primarily in the
healthcare, energy and financial services sectors which represent
highly complex market and regulatory environments. Professional
service offerings include strategic, financial, operational,
technology, risk management, compliance, investigative solutions,
dispute resolutions services and business process management
services. The Firm provides services to companies, legal counsel
and governmental agencies. The business is organized in four
reporting segments – Disputes, Investigations & Economics;
Financial, Risk & Compliance; Healthcare; and Energy. More
information about Navigant can be found at navigant.com.
Statements included in this press release which are not
historical in nature are forward-looking statements as defined
within the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may generally be identified by words
such as “anticipate,” “believe,” “intend,” “estimate,” “expect,”
“plan,” “outlook” and similar expressions. These statements are
based upon management’s current expectations and speak only as of
the date of this press release. The Company cautions readers that
there may be events in the future that the Company is not able to
accurately predict or control and the information contained in the
forward-looking statements is inherently uncertain and subject to a
number of risks that could cause actual results to differ
materially from those contained in or implied by the
forward-looking statements including, without limitation: the
success of the Company’s organizational changes and margin
improvement initiatives; risks inherent in international
operations, including foreign currency fluctuations; ability to
make acquisitions and divestitures; pace, timing and integration of
acquisitions and separation of divestitures; impairment charges;
management of professional staff, including dependence on key
personnel, recruiting, attrition and the ability to successfully
integrate new consultants into the Company’s practices; utilization
rates; conflicts of interest; potential loss of clients or large
engagements; clients’ financial condition and their ability to make
payments to the Company; risks inherent with litigation; higher
risk client assignments; professional liability; potential
legislative and regulatory changes; continued access to capital;
and market and general economic conditions. Further information on
these and other potential factors that could affect the Company’s
financial results are included under the “Risk Factors” section and
elsewhere in the Company’s filings with the Securities and Exchange
Commission ( SEC ), which are available on the SEC’s website or at
www.navigant.com/investor_relations.
The Company cannot guarantee any future results, levels of
activity, performance or achievement and undertakes no obligation
to update any of its forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20160104005755/en/
Navigant Corporate CommunicationsMegan Maupin,
312.583.5703orNavigant Investor RelationsAaron Miles,
312.583.5820
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