Kareo Sells Managed Billing Services Business
Kareo, a provider of cloud-based clinical and business management software for independent medical practices and medical billing companies, announced the sale of its revenue cycle management (RCM) services business unit to an independent supplier of outsourced medical billing services, Health Prime International.
Kareo will now fulfill the growing demand for outsourced medical billing services exclusively through its leading network of over 1,500 medical billing company partners. This shift in strategy enables Kareo to increase its focus on building the industry’s leading cloud-based software platform for independent medical practices and the billing companies that serve them.
“The sale of Kareo Managed Billing will enable Kareo to focus on more quickly advancing our software platform and customer support offerings to continue building on our position as the leading cloud-based software supplier to independent medical practices and billing companies,” said Dan Rodrigues, founder and CEO of Kareo. “We believe this shift in strategy will also help Kareo build stronger relationships with medical billing companies, who in the past were concerned about competing with their software supplier.”
“Once again, Kareo has demonstrated their commitment to medical practices and the billing company industry by focusing their intellect and energies on providing a premier platform for us to use to better support our providers and build their practices. We applaud Kareo for exiting the services side of the business and helping us to grow ours,” said Tracy L. Freeze, president of HMS Midwest, LLC.
Kareo is the first medical practice software company to acknowledge that independent medical billing companies are best positioned to meet the outsourced billing services needs of medical practices. Independent medical billing companies have demonstrated their ability to deliver highly targeted expertise around medical specialty-focused billing, improved reimbursements and increased operational efficiency.
“We’re pleased that Kareo’s decision to sell their RCM services business will give them even more focus and resources to commit to their industry-leading software platform, which gives their billing company partners such a powerful, competitive advantage in the market,” said Ray Shammo, president of PhysicianDS.