Athenahealth, a Watertown, Mass.-based medical software company headed by Jonathan Bush, a cousin of President Bush, is set to go public, according to a story reported yesterday by Bloomberg.com.
While company officials would not confirm the report, according to several unnamed sources, the initial public offering will be handled by investment banks Goldman, Sachs & Co. and Merrill Lynch. No date was identified for the offering, but several healthcare finance analysts suggested the company may be positioning itself to take advantage of an anticipated push to automate healthcare records now that the Internal Revenue Service and other federal agencies have opened the gates for hospitals to provide their affiliated physicians with subsidies to create electronic healthcare records for patients.
According to the company's Web site, Athenahealth is the country's largest revenue cycle-management company for office-based physician practices; it has nearly $2 billion in accounts payable currently under management. The financing generated by the offering would provide capital for Athenahealth to expand into the potentially highly profitable electronic-records sector.
Athenahealth reported nearly $76 million in sales for 2006, but did not say what percentage, if any, of those earnings represented profits.