In a deal potentially worth more than $15 million a year, healthcare transaction processor ProxyMed has agreed to become the exclusive clearinghouse services provider of the Healthcare Billing Management Association.
HBMA, a Laguna Beach, Calif.-based organization of more than 625 medical billing companies, says it will promote ProxyMed electronic claims and eligibility processing services to its membership as part of the three-year contract, signed last week and announced Monday.
"It is an exclusive arrangement for HBMA members," says Judson Schmid, executive vice president, CFO and treasurer for Fort Lauderdale, Fla.-based ProxyMed.
Schmid says that the company hopes during the first year of the contract to capture 5% of the estimated 300 million transactions HBMA members process annually, a goal that will rise to 12% during the second year and 20% for the final year of the deal.
"If we meet the target at the end of the third year, then the exclusivity will stand," Schmid says.
Schmid estimates that ProxyMed charges about 25 cents per transaction. At that rate, ProxyMed would generate $15 million in revenue per year by capturing 20% of the HBMA transaction volume.