MedAssets, a healthcare group purchasing and revenue-cycle management company, reported lower income for the first three months of 2015, the second quarter since the company acquired healthcare consultancy Sg2.
The Alpharetta, Ga.-based group purchasing and revenue-cycle management company reported net income of $3.4 million during the three months ended March 31, down 56.3% from $7.7 million during the same period the year before.
Revenue rose 8.6% to $185.6 million counting revenue from Sg2, which MedAssets acquired for $142 million in September last year. Excluding Sg2 revenue, year-over-year revenue growth would have been 2.4%.
Costs related to restructuring and acquisitions, meanwhile, contributed to a 15% rise in costs.
MedAssets executives acknowledged that the results were disappointing. They noted that the company's revenue-cycle management business came in above guidance, but the performance of its GPO and supply-chain services segment was slightly below guidance.
The supply chain division benefited from the Sg2 acquisition and growth in group-purchasing administrative fees. The growth was offset, however, by a decline in fees from MedAssets' consulting business.
MedAssets reaffirmed its full-year guidance, anticipating total net revenue between $753 million and $767 million, up 4.6% to 6.5% over 2014.
