San Diego’s AMN Healthcare Inc., the largest health care staffing company in the nation, has snatched up its fifth health care company in less than two years. The acquisition of Franklin, Tenn.-based Peak Health Solutions, a health information management company, is expected to immediately boost AMN’s revenue.
The Tennessee company provides remote medical coding and consulting solutions to hospitals and physician medical groups nationwide, expanding the services AMN can offer its clients.
"AMN takes great pride in listening and responding to the ever changing needs of our clients through both internal innovation and strategic acquisitions," said Susan Salka, president and CEO of AMN Healthcare, in a statement. "The addition of Peak Health Solutions will expand our workforce solutions and enable AMN to offer our clients services in accurately coding diagnosis and procedure codes, which is critical to clinical quality reporting and the financial health of healthcare organizations."
The company intends to help health care providers improve documentation in the clinic to increase timely reimbursement.
“With more than 150,000 ICD-10 codes to choose from, health care organizations have an ongoing need for coding support to reduce potential lost revenue, minimize compliance risk and augment their billing teams,” said John Morris, president of Peak Health Solutions, in a statement.
ICD stands for International Classification of Diseases.
Peak Health Solutions is currently bringing in about $33 million in annual revenue, according to an AMN news release. The acquisition is expected to be immediately accretive to AMN's earnings per share.
The acquisition was funded out of cash on hand and borrowings under the company's existing revolving credit facility. The business will be included in AMN’s “Other Workforce Solutions” segment for financial reporting purposes, the company said.
The purchase of Peak Health Solutions is the latest in a long line of AMN’s acquisitions.
In late 2014, the company bought Omaha, Neb.-based Avantas, a health care consulting and software company, for $16.5 million.
Then in early 2015, AMN acquired three brands from OGH LLC for $82.5 million: nurse and allied health care staffing firm Onward Healthcare, national locum tenens provider Locum Leaders and Medefis, an SaaS-based vendor management system for health care facilities provider.
In September 2015, AMN Healthcare paid $6.5 million to snatch Irvine-based The First String Healthcare, a leading provider of nursing staff. The acquisition strengthened AMN Healthcare’s temporary and permanent nursing manpower. It also expanded the company’s footprint by adding more than 250 of the nation’s top hospitals from The First String Healthcare’s client base.
Then, in January 2016, the company acquired global health care staffing firm B.E. Smith for $160 million in cash. The acquisition expanded AMN Healthcare’s penetration across acute care hospitals, academic medical and children’s hospitals, physician practices, and post-acute care providers. The purchase is expected to add approximately $100 million in annual revenues to AMN Healthcare’s top line.
These acquisitions have driven considerable growth at AMN Healthcare. Revenues surged 41 percent year-over-year from $1.04 billion in 2014 to $1.46 billion in 2015.