Firstsource buy-outs MedAssist for \0 mln

New Delhi, Aug 29 (UNI) Leading BPO (Back-office) company Firstsource Solutions Ltd today said it has acquired US-based MedAssist Inc for 330 million dollars.

MedAssist Holding Inc is a leading provider of revenue cycle management in the US healthcare industry.

''Firstsource already has a significant presence in the payor (insurance) side of the market. This acquisition gives us access to the equally large provider (hospital end) side,'' said Firstsource Managing Director and CEO Ananda Mukerji.

Firstsource already has a presence in MedAssist Inc and this acquisition will help it enter the hospitals business across the US, it added.

Income from services to healthcare clients represented 13.7 per cent of Firstsource's revenues for the quarter ended June 2007.

The acquisition is subject to the regulatory approval under the US Hart Scott Rodino Anti-Trust Improvements Act, 1976.

MedAssist has over 1,000 clients including hospitals and large physician groups and had posted a revenue of 99 million dollars in 2006.

The size of the US hospital care market is about 700 billion dollars and administrative costs are estimated to be about 14 per cent, thereby presenting a good opportunity.

UNI