Medical Collection Firms Help Software Developers Sell Product

By Jonathan Summers

iVolution Medical Systems, a West Hampton, New York located health care systems firm, is taking a different approach. The 4 year-old company, started by former Wall Street consultants to the health care industry, entered the medical receivables space by receiving experienced billing and collections companies. First there was Professional Health care Billing Services (PHB) of Palm Springs, California in March, and then Continental Collection Services of NY, earlier this month (iVolution Medical Systems Acquires Continental Collection Services, May 13).

Despite the regulatory perplexity surrounding the health care industry, iVolution co-chair and chief financial officer Vince Pipia told insideARM that the medical billing and collection industry is ripe for consolidation. We think (medical billing and collections businesses) are all good cash generators, and they have a coveted relationship with physicians, Pipia said.

Specifically, its that relationship that Pipia wants to capitalize on to provide integrated billing and collections services to health care providers as they transition to health care information systems. Electronic medical records, billing, e-prescriptions and instant messaging are among the solutions offered by the company. Our goal is to build and grow medical billing to cross-sell technology.

In the year since iVolution introduced its products to the market, Pipia said some of iVolutions technology is gaining popularity among its pediatricians. Likewise, iVolutions billing and collections clients are pleased by the benefits of its free instant message technology.

Since conversion to electronic medical records was dubbed as the one change that the entire health care industry agrees can boost efficiencies and lower costs, dozens of companies have been working to develop technology solutions. Still, only 8 percent of health care providers operate fully functioning electronic medical record systems, Pipia said.

Most EMR (electronic medical records) are expensive, Pipia said. Analyst Michael Klozotsky said he expects more ARM industry consolidations and acquisitions as some company owners look to exit the business to avoid regulatory changes that will come with health reform. However, the health industrys desire to use more health information technology and the Obama administrations commitment to helping fund the transition leaves a wealth of opportunity for companies that can help health care providers comply with new technology mandates, he said.

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