Chennai
The sale process has been initiated as the Dallas-based specialised BPO entity with significant presence in Chennai, looks at attracting private equity investors also as another option, revealed a source.
Even as the company has been beefing up its robotic process automation (RPA) operations for some time now, the chunk of its revenue share comes from a single client – Athena, that contributes over 70 per cent to Access Healthcare.
“This means there is more revenue at risk for Access,” notes the source. Over 7,000 of the 11,000 people in the Access Healthcare team are dedicated to service its biggest client Athena.
Earlier this year, it was reported that Athenahealth Inc was sold to Veritas Capital for $5.47 billion. It is reliably learnt that Access Healthcare is looking at valuation in the range of $400 mn to $500 mn, on the lines of another BPO called AGS, a Chennai and Newark-based RCM major. AGS is reported to have attracted Baring Private Equity Partners, that is considering to buy it out for $320 million.
The global healthcare RCM market is turning out to be a lucrative business with a new report pegging its value upwards of $100 billion by 2024. Increasing healthcare expenditure in developed as well as developing countries are expected to escalate the industry growth during forecast period, the report said.
In September 2018, Access Healthcare had acquired the Noida-based Pacific BPO for $17 mn. The transaction implied Pacific BPO’s 2,100 employees being retained with Access Healthcare. The deal turned the combined entity into one of the largest healthcare outsourcing companies with over 11,000 employees.
Access Healthcare Chairman Anurag Jain had then said, “With the addition of hospital inpatient RCM capabilities that Pacific BPO brings, we have significantly increased the breadth of healthcare customers in our portfolio.” Post the acquisition, Pacific CEO Kumar Shwetabh became part of the executive leadership team of Access Healthcare as President of the hospital business.
The acquisition was aimed at boosting its onshore capability but the progress achieved is marginal, it is learnt. Last December, David Tassoni, formerly SVP, Operations, Athenahealth, was hired by Access Healthcare to be President of its operations in the US.
DTNext had earlier reported Access Healthcare had onboarded Amitabh Vartak as the COO for offshore operations, and payer industry veteran Jim Carlough as the SVP for North America Operations. Shaji Ravi, President and MD, Access Healthcare, was not available for comment.
Visit news.dtnext.in to explore our interactive epaper!
Download the DT Next app for more exciting features!
Click here for iOS
Click here for Android