NASHVILLE – In a move that will add comprehensive government program patient eligibility and enrollment services to its existing revenue cycle management suite, Emdeon has announced it will acquire Atlanta-based Chamberlin Edmonds & Associates, which serves more than 200 acute care facilities in 30 states.

Chamberlin Edmonds uses technology to help hospitals lower the incidence of uncompensated care, reduce bad-debt expense and increase overall cash flow. Emdeon will acquire the privately held company for $260 million in cash.

"The acquisition of Chamberlin Edmonds continues Emdeon's strategic expansion into technology-enabled services that drive meaningful value for our customers and make healthcare more efficient," said George Lazenby, Emdeon's CEO. "As government programs continue to expand under healthcare reform, hospitals will need better tools to lower the rate of uncompensated care and increase cash flows. The combined company will be able to offer enhanced revenue cycle services designed to help providers navigate the complex systems related to government reimbursement."

With nearly 25 years of patient advocacy, guiding uninsured patients through the complex processes associated with securing reimbursement from Medicaid, Social Security Disability, state disability, charity care and other community benefit programs, Chamberlin Edmonds' service model includes highly-trained professionals – such as staff nurses, trained social services personnel and government program specialists – that are located on-site at a hospital and collaborate closely with the hospital's revenue cycle team.

To support its on-site healthcare representatives, Chamberlin Edmonds utilizes its regional resolution centers and centralized back office infrastructure to deliver cost-efficient and comprehensive eligibility services from initial patient referral through the post-application resolution process.

The Congressional Budget Office projects that the recent healthcare reform will result in Medicaid volumes growing from 39 to 55 million eligible individuals by 2014. These increases will likely impact providers because the amount of uncompensated care provided to low income or unemployed patients is greatly affected by the amount of state Medicaid funding. By integrating Emdeon's revenue cycle management solutions with Chamberlin Edmonds'  enrollment services, providers will have an enhanced platform to assist patients in applying for financial assistance programs and increase the likelihood of receiving payments for services provided to those patients.

"Chamberlin Edmonds has created a scalable technology-enabled service delivery platform that blends national reach and perspective with local delivery and knowledge," said T. Ulrich Brechbuhl, president and CEO of Chamberlin Edmonds & Associates. "By joining Emdeon, we are significantly better positioned to offer the full suite of tools, technologies, services and expertise required to build an optimized eligibility process, from screening through enrollment and cash recovery, to hospitals nationwide."

For the six-months ended June 30, 2010, Chamberlin Edmonds' revenue was approximately $46.3 million. The acquisition is subject to customary closing conditions and is expected to close in the fourth quarter of 2010.