February 1, 2012

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ADP Acquires PhyLogic Healthcare

Press Release

February 1, 2012

ADP announced the acquisition of privately-held PhyLogic Healthcare, a highly-respected Revenue Cycle Management (RCM) company that has served small- and mid-size U.S. medical practices since 2001. The ADP medical office software division, ADP AdvancedMD, a provider of leading cloud practice management, electronic health record, medical scheduling, and billing applications, now offers outsourced medical billing services to practices seeking to improve revenue and offload costly and complex medical claims processing.

According to ST Advisors, LLC, the U.S. RCM market is projected to grow from approximately $4B in 2010 to more than $9B by 2018, spurred in part by expected medical reimbursement regulation changes. "With the acceleration of regulatory compliance challenges, including the move to ICD-10 coding standards, an increasing number of medical practices are outsourcing medical claims management," said Raul Villar, president, ADP AdvancedMD.

While other national billers focus on large institutions, ADP has vast experience with the small business market, serving more than 400,000 clients. Continued Villar, “Trust and peace of mind for the health care provider are critical when deciding to outsource billing and ADP has a long-standing history of serving medical professionals in practices of all sizes. The addition of revenue cycle management is a natural extension of our value-add to independent physicians.”

"Having partnered with ADP AdvancedMD for years, we are excited to expand our RCM capability and maximize reimbursement for our medical provider clients," commented Markus Muhlhauser, CEO, PhyLogic. "ADP AdvancedMD has an intense focus on maximizing collections for clients. We have built a successful medical billing company by helping clients realize income faster. Our commitment and expertise together are well matched and with all of our clients already familiar with ADP AdvancedMD’s innovative cloud-based software, we’re looking forward to a seamless transition for our entire client base with increased resources."

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