With the growth in managed care, it's been tough for physician practice reimbursement. Basically, physician practices need to get the right data in order to get payments. As a result, it's not uncommon for them to give up on some accounts and just write them off. To deal with the problems, athenahealth has created a broad offering of Net-based software systems. It's turned out to be a pretty good business.
In fact, the company has filed to go public.
Athenahealth helps with things like: revenue cycle management, clinical cycle management and billing. What's more, the upfront investment for customers is fairly modest. A majority of revenues for athenahealth come from the percentage of collections.
For 2006, athenahealth increased revenues from $53.5 million to $75.8 million.
The underwriters on the deal include Goldman Sachs (NYSE: GS) and Merrill Lynch (NYSE: MER). The proposed ticker symbol is "ATHN."
You can check out the prospectus at the SEC web site. And, if you want to see some more recent IPOs, click here.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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