MedAssets Seeks $230 Million in its IPO

MedAssets Inc. yesterday reported its plans to raise as much as $230 million through an initial public offering.

MedAssets provides revenue capture and supply expense management services to hospitals nationwide, according to its S1 filing earlier this year with the U.S. Securities and Exchange Commission. The Alpharetta, Ga.-based company reported its revenue cycle management system has more than 1,000 hospital clients and its Spend Management system covers about $15 billion in healthcare supplier spending by more than 1,700 hospitals.

MedAssets reported 2006 net income of $8.6 million on revenues of $146.2 million.

The software and services of the revenue management system provide claims management and accounts receivables management. MedAssets estimates its system can improve net patient revenues by 1 percent to 3 percent.
    
MedAssets reports its market base is about 125 large healthcare systems, including about 2,500 acute care hospitals, and about 30,000 ancillary providers. The total market for both its revenue cycle and spend management systems is worth about $6.5 billion, the company reports.

The company will trade on the Nasdaq market under the stock ticker symbol MDAS. The co-lead underwriters on the IPO are Morgan Stanley and Lehman Brothers.

MedAssets competitors include Premier Inc., a not-for-profit owned by its member hospitals and health systems.