MedAssets? Revenue Cycle Management Unit Boosts Revenues

A strong performance by its revenue cycle management business helped boost MedAssets Inc.’s full year net revenue 29 percent to $188.5 million for the year ended December 31, 2007. But it wasn’t enough to pull the Atlanta-based healthcare financial software and services provider out of the red.

MedAssets said yesterday that it lost $9.8 million, or 75 cents a share in 2007, compared with a loss of $5.9 million, or 67 cents a share in 2006, on $146.2 million in revenues. In the fourth quarter, MedAssets lost $3.7 million, or 20 cents a share, on $53.9 million in sales, compared with 16 cents from $37 million in revenues in the year ago period.

MedAssets completed its initial public offering on December 18, 2007 and received net proceeds of $216.6 million. The cash infusion helped MedAssets reduce its bank debt by $120 million, or nearly 38 percent before the end of the year. The company also completed two acquisitions in its revenue cycle management segment, increasing revenues 26 percent to $101.5 million in 2007 from $80.5 million in 2006. MedAssets bought Xactimed of Richardson, Texas in May of 2007 and MD-X of Mahwah, N.J. in July.

“The integration of our revenue cycle management acquisitions continues to proceed well,” Neil Hunn, chief financial officer, said in a statement. “Our revenue cycle sales force is fully integrated and we expect to release three to five new or enhanced revenue cycle products during this year.”