ARM Firm Kadent Acquires Hospital-Owned Medical Collector

Kaulkin Ginsberg Company announced today that Kadent Corporation (formerly ARM Holdings, Inc.), a leading provider of receivables management services, has acquired substantially all of the assets and assumed certain liabilities of Mutual Hospital Services, Inc. (MHS). Terms of the transaction were not disclosed. Kaulkin Ginsberg initiated the transaction and served as advisor to MHS.

Established in 1958, MHS is a not-for-profit 501 (e) corporation that provides contingency collection services to the healthcare industry. MHS was principally owned by three Indianapolis-area hospitals: Clarian Health Partners, Community Hospitals of Indiana, and Sisters of St. Francis Health Services. In addition to the principal owners, MHS serves more than 60 healthcare facilities in Indiana, Kentucky, Illinois, and Ohio.

With Kadent’s nationwide receivables management services, the combined company will serve nearly 800 clients, process approximately $1 billion in placements over the next year, and employ nearly 200 people in three locations.

“We are delighted to have brought MHS together with Kadent. The combined resources and outstanding reputation of both companies creates a compelling healthcare-focused accounts receivable management platform,” said, Michael Lamm, Associate of Kaulkin Ginsberg and lead advisor on the transaction. “Healthcare ARM companies are attracting the interest of strategic and financial buyers in the current market, so the timing is right for hospitals who wish to divest.”

“The MHS transaction provides us with an opportunity for accelerated growth, a substantial geographic increase in the Midwest market, and [it] adds a number of prestigious healthcare clients to our growing portfolio,” said Bruce Colburn, Kadent President and Chief Executive Officer.

MHS Chairman Charles Meadows added, “We were careful in selecting a company to assume the receivables management responsibilities entrusted by our clients to MHS for nearly 50 years. Overall, we are very pleased with the outcome of this transaction and Kaulkin Ginsberg's ability to help us identify and consummate a transaction with such a strong receivables management company.”

Kaulkin Ginsberg Company is the parent company of Kaulkin Media and insideARM.com.