Navigant Consulting has acquired McKinnis Consulting Services, a Chicago-based company that provides revenue-cycle assessment, strategy and optimization assistance for healthcare providers.
Navigant, also headquartered in Chicago, paid $49 million in cash and $3 million in Navigant stock at closing as part of the deal. According to the terms, Navigant could also pay up to $10 million based on McKinnis meeting certain post-closing targets.
“McKinnis is a market leader in revenue-cycle management services, and now in combination with the breadth and depth of Navigant's healthcare team, will be able to provide clients with an even richer set of offerings to optimize their operations,” said Julie Howard, Navigant chairman and CEO, in a press release.
McKinnis works with healthcare providers to improve revenue-cycle management by optimizing technology and electronic health-record systems.
McKinnis will bring 70 new consultants to Navigant's revenue-cycle management arm. McKinnis' leadership, which consists of founders James McHugh, Timothy Kinney and John Morris, will join Navigant's revenue-cycle leadership team, according to the release.
Navigant will decide the structure of its new leadership team over the next six months, said David Zito, managing director of Navigant's healthcare practice. The founders are all practicing consultants and each has a strength in methodology, sales and business management. That attracted Navigant, he said.
After the deal closes, Navigant will have a total of 5,000 employees, according to a company spokeswoman.
In its most recent quarterly financial filing for the three months ended Sept. 30, Navigant reported $230.3 million in total revenue. For fiscal 2014, the company saw $859.6 million in total revenue.
Navigant was active in merger and acquisition deals last year. In February, the company paid $22 million for RevenueMed, a firm that provides coding, revenue-cycle management and business process management services to healthcare providers.
Last month, Navigant leased 110,000 square feet in a 53-story tower currently under construction in Chicago's West Loop. The company was ranked ninth on Modern Healthcare's 2015 largest revenue-cycle management firms survey.