Kareo, Inc. has announced the acquisition of privately held ECCO Health, a full-service provider of medical billing and associated solutions. Kareo has extended employment offers to all ECCO managers and employees and all are expected to join the new combined company. The acquisition of ECCO follows Kareo’s January 2013 launch of Kareo Billing Services, and the combined business now provides medical billing services to over 500 medical practices nationwide.
“Having worked with hundreds of billing companies since Kareo’s founding in 2004, we’ve developed a deep understanding of the range of capabilities from billing company to billing company,” said Dan Rodrigues, founder and CEO of Kareo. “ECCO is noteworthy due to the strength of its team, the quality of its customer relationships, the efficiency of its operational model, and the company’s track record of innovation. The combination of ECCO’s considerable strengths with Kareo will enable us to deliver an even stronger solution to the market. We welcome ECCO’s customers and team to the Kareo family.”
ECCO Health has provided medical billing services for the last decade, building a national capability from the company’s base in Las Vegas. During that time ECCO has built considerable expertise across a wide range of specialties, including Primary Care, Gastroenterology, General Surgery, Plastic Surgery, Otolaryngology, Pain Management, Endocrinology, Internal Medicine, Podiatry, Infectious Diseases, Hospitalist and Hospitalists Groups, Surgery Centers, Urgent Care, Anesthesia, Neurology, Cardiology, Dermatology and Durable Medical Equipment organizations.
“The strengths of Kareo’s practice management and EHR applications have been a key element of our success with our customers over time,” said Jim Sholeff, founder and partner of ECCO Health. “We also appreciate Kareo’s commitment to working in an open and collaborative way with its partners, including billing companies. Now we have a remarkable opportunity to join forces and deliver to our customers an even stronger set of solutions.”
According to a new report by Frost & Sullivan, U.S. Physician Revenue Cycle Management (RCM), the market for physician RCM solutions in 2012 was $11.1 billion and is expected to grow to $14.6 billion by 2016. “Medical Practices realize they must take every measure to maximize revenue and address inefficiencies and shortfalls in getting paid fully and on a timely basis,” wrote Nancy Fabozzi, Principal Analyst, Connected Health, Frost & Sullivan. “Medical practices will need to significantly re-engineer their entire RCM function, and most will seek solutions that offer robust integration between clinical and financial systems.”
The acquisition of ECCO positions Kareo well for the expected growth in integrated physician RCM solutions. The company now serves over 20,000 providers across the U.S. representing all medical specialties.