Navigant buys McKinnis Consulting Services for 52 million
Navigant has acquired healthcare business process optimiser McKinnis Consulting Services for a reported cash payment of $49 million and $3 million in stock. Based on its performance, a further $10 million may be made available to the owners. The three founders of McKinnis will join Navigant’s revenue cycle leadership team.
McKinnis Consulting Services (McKinnis) was founded in 2009 and is based in Chicago. The consulting firm, which focuses primarily on the healthcare sector, provides its clients with strategies across all major HER systems, with the aim of improving revenue cycles by implementing technology optimisation and operational best practices. Clients for the firm include academic medical centres, multi-hospital health systems, physician groups, and community hospitals among others.
The acquisition deal will bolster Navigant’s healthcare capabilities, strengthening its service to the evolving healthcare landscape. McKinnis’ more than 70 consultants will complement Navigant’s revenue cycle management (RCM) capabilities, with the three founders – James McHugh, Timothy Kinney and John Morris – added to the revenue cycle leadership team.
“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 optimise their operations,” comments Julie Howard, Chairman and CEO of Navigant on the deal.
McHugh, Managing Director at McKinnis, remarks: “Recent legislation and market drivers have bolstered spending in the healthcare industry and increased demand for EHR optimisation on the clinical side. Our EHR risk mitigation and optimisation expertise, combined with Navigant’s clinical expertise, will create timely solutions for healthcare organisations. We are excited to join forces with Navigant to design innovative offerings that help our clients realise their goals.”
Transaction
Navigant will pay around $49 million in cash for McKinnis, as well as $3 million in Navigant common stock at closing. A performance clause is part of the contract, with a further $10 million available for the sellers based on the post-closing performance targets being achieved by the company.
