Emdeon to Acquire Chamberlin Edmonds for $260 Million Cash

September 7, 2010, 8:22 AM

Emdeon Inc. (NYSE: EM) announced on Tuesday that they have agreed to buy to privately held Chamberlin Edmonds & Associates Inc. for $260 million in cash.

Chamberlin Edmonds helps hospitals to reduce uncompensated care and lower bad debt expenses. The company, who is based in Atlanta  works with uninsured patients to help them navigate Medicaid, Social Security, disability and charity care programs. Currently working with 200 acute care facilities through out 30 states.

George Lazenby, Emdeon’s CEO said in a statement .”The acquisition of Chamberlin Edmonds continues Emdeon’s strategic expansion into technology-enabled services that drive meaningful value for our customers and make healthcare more efficient,”

“As government programs continue to expand under healthcare reform, hospitals will need better tools to lower the rate of uncompensated care and increase cash flows. The combined company will be able to offer enhanced revenue cycle services designed to help providers navigate the complex systems related to government reimbursement.”

For the six-months  Chamberlin Edmonds’ revenue was approximately $46.3 million for the six months ending June 30. The acquisition is subject to regular closing conditions and both companies expect to close in the fourth quarter of 2010.

Emdeon shares dropped 17 cents to $10.34 during morning trading.

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Tags: emdeon, healthcare reform, NYSE