PBM Acquires Medova Medical Billing Division
Bob Anderson, owner of Professionals’ Business Management (PBM), an Overland Park, Kansas-based medical billing firm, wanted to expand his business geographically. Anderson still had many contacts in his hometown of Wichita, Kansas and also felt that the Wichita market was less saturated than Kansas City. He also believed the best way to expand PBM was through acquisition. For a service company, established connections and employee expertise are critical. Acquiring a medical billing firm in Wichita would provide PBM with instant client relationships.
Anderson contacted Mariner Capital Advisors to help him identify potential acquisitions. Mariner Capital Advisors began by identifying approximately 100 medical billing companies in Kansas and Missouri and then conducted a targeted campaign to determine which companies best met Anderson’s criteria, including geography and size of company. Mariner Capital Advisors quickly narrowed the list to a handful of companies, of which the most suitable was Medova Healthcare in Wichita. At the time, Medova operated a medical billing division alongside its healthcare benefit design and management business. However, Medova CEO Dan Whitney recognized that medical billing distracted Medova from its primary business and would not be profitable for the company long-term.
PBM acquired the medical billing division of Medova Healthcare in May 2005. The acquisition gave PBM instant access both to a new market and to Medova’s established client base. It also allowed PBM to maintain a physical presence in Wichita, which was important for many of the doctors who used its billing services. PBM gained new billing software that Anderson could implement throughout his organization, thereby offering greater efficiencies to all PBM clients. In addition, the acquisition allowed PBM and Medova to share networking and referral opportunities with each other, giving both companies a new path to continued growth.
About Professionals’ Business Management
Founded by Bob Anderson in 1986, Professionals’ Business Management (PBM) is a business resource for medical practices. By working closely with physicians on staff training, electronic medical records, and collections, among other business operations, PBM insures that the business side of a medical practice runs efficiently.
About Mediova Healthcare
Based in Wichita, KS, Medova Healthcare provides healthcare benefit design and management services to health insurance carriers, TPAs, employers, and healthcare consumers.
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