Health IT company Ingenix will acquire St. Petersburg, Fla.-based CareMedic Services in a cash transaction, the terms of which were not disclosed.
With the acquisition, Ingenix will be able to offer applications for patient registration, eligibility verification, financial clearance, coding and compliance, bill submission, denials management and the remittance processing components of the hospital revenue cycle.
The Eden Prairie, Minn.-based Ingenix also said that CareMedic’s electronic financial record platform capabilities will complement its coding, compliance and automated credit balance tools.
CareMedic will also expand Ingenix’s existing business process outsourcing capabilities with patient financial management services, accounts receivable management, secondary billing and denials recovery, according to the companies.
Ingenix, a subsidiary of the Minneapolis-based payor UnitedHealth Group, was dropped by health insurance company Cigna in February following a string of payor fines for using its Prevailing Health Charges System and Medical Data Research databases. An investigation by N.Y. Attorney General Andrew M. Cuomo’s office found that the databases severely understated the true market rates of U.S. medical care.
A $50 million settlement by UnitedHealth Group was paid to overhaul the databases and fund a nonprofit organization to develop and own a new, independent database to replace the previous databases, which were used by health plans and employers to determine the reimbursement rates to members who received physician services outside their managed care networks.