MedAssets Files for $230 million IPO

Healthcare revenue technology provider MedAssets, Inc. filed an S-1 form with the U.S. Securities and Exchange Commission Friday declaring its intentions to go public in an intial public offering it values at around $230 million.

The Alpharetta, Ga.-based firm provides cash management software for healthcare providers. MedAssets has been steadily increasing its presence in the revenue cycle management sector through acquisitions and service offerings after focusing on cost management in its early years.

According to the filing, MedAssets offers “a comprehensive suite of software and services spanning the hospital revenue cycle workflow.” The company uses a hosted model to manage the patient revenue cycle from admission to claims processing and accounts receivable management.

In July of this year, MedAssets announced it had acquired MD-X, another provider of accounts receivable systems to the healthcare industry. In May, MedAssets bought XactiMed, Inc. to bolster its claims management offerings. In June, the company announced a debt purchasing and collection agreement with healthcare ARM firm Equicare Capital to boost its ARM offerings.

Under the proposed IPO, MedAssets will trade on the NASDAQ stock exchange under the symbol MDAS. The IPO is being underwritten by Morgan Stanley and Lehman Brothers, and current MedAssets investors include Galen Partners, Grotech Capital Group, and Parthenon Capital. In the ARM industry, Parthenon had previously invested in Arrow Financial Services and Diversified Collection Services (DCS).

MedAssets reported revenues of $146.2 million in 2006 in the filing. A spokesperson declined to comment today citing a quiet period leading to the stock offering. The SEC is now reviewing the S-1.