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8-K - FORM 8-K - NAVIGANT CONSULTING INC | c60565e8vk.htm |
Exhibit 99.1
Erin Bowler |
Jennifer Moreno | |
Navigant Healthcare Marketing |
Navigant Investor Relations | |
312.583.3659 |
312.573.5634 |
NAVIGANT ACQUIRES ETHOSPARTNERS, STRENGTHENING HEALTHCARE CONSULTING PRACTICE
Navigant Healthcare Team now consists of 450 Dedicated Consulting Professionals
CHICAGO
October 4, 2010 Navigant (NYSE: NCI) announced today that it has acquired EthosPartners
Healthcare Management Group, Inc. (EthosPartners), a national healthcare consulting group
specializing in physician and hospital alignment, physician practice operations management, and
physician revenue cycle management. Combining EthosPartners physician expertise with Navigants
existing healthcare practice capabilities significantly enhances and broadens the solutions that
Navigant offers to its clients.
We are very pleased to make an additional investment in one of our key strategic growth areas
following earlier 2010 investment success in our Energy, Disputes and Economics practices,
commented William M. Goodyear, Chairman and Chief Executive Officer of Navigant. In order to
compete in todays rapidly changing market, health systems are exploring strategies for adding
physicians as their partners in care delivery. The need to integrate and manage these physician
groups to prepare for the demands of health reform while delivering high quality care is rapidly
accelerating. The combination of our existing healthcare team with EthosPartners will position us
to assist clients in addressing the impacts of this change.
EthosPartners physician focused experience in the areas of practice management, revenue cycle
management, business intelligence and strategic consulting services is a strong complement to
Navigants healthcare provider expertise. The EthosPartners team includes 180 billable
professionals, 85 of which are part of the revenue cycle outsourcing business based in South
Dakota. Eight of the professionals will be joining Navigant as Managing Directors, with several
taking practice leadership roles.
Hospitals, health systems and physician practices need to prepare for lower reimbursements from
Medicare, Medicaid and commercial payers, while constructing a delivery capability that can accept
innovative payment techniques tied to better quality outcomes, commented Dave Zito, Managing
Director and Navigant Healthcare Practice Leader. By joining forces with EthosPartners we are
creating a one-of-a-kind consulting group that can help clients survive in todays competitive
healthcare market. The passage of healthcare reform has thrust our clinical integration practice
into the spotlight and with our combined organizations we are better positioned to help transform
health systems into Accountable Care Organizations.
In addition to expanding existing consulting services, EthosPartners broadens Navigants healthcare
solutions with the addition of a recognized revenue outsourcing solution. Using proven business
processes the group helps its clients achieve efficiency in billing and collecting to reach optimal
financial performance. Additional information about EthosPartners can be found at
www.ethospartnershc.com.
Uniting EthosPartners physician practice expertise with Navigants healthcare solutions makes us
the only one to combine hospital physician strategy and integration expertise with roll up the
sleeves practice management and operational execution that can achieve implementable performance
improvement targets, commented Alex Hunter, President and Chief Executive Officer of
EthosPartners. This combination of resources and capabilities will help healthcare providers
prepare their organizations to succeed in the rapidly changing healthcare market.
Under the terms of the asset purchase agreement, Navigant paid a total of $37 million, consisting
of $28 million in cash, $2 million in restricted Navigant stock and $7 million of deferred cash
payments. In addition, EthosPartners can earn up to $8 million of additional payments based on the
future performance of the business.
About Navigant
Navigant Consulting, Inc. (NYSE:NCI) is a specialized independent consulting firm providing
dispute, financial, regulatory and operational advisory services to government agencies, legal
counsel and large companies facing the impacts of uncertainty, risk, distress and significant
change. The Company focuses on industries undergoing substantial regulatory or structural change
including healthcare, energy and financial and insurance services, and on the issues driving these
transformations. Navigant is a service mark of Navigant International, Inc. Navigant Consulting,
Inc. (NCI) is not affiliated, associated, or in any way connected with Navigant International, Inc.
and NCIs use of Navigant is made under license from Navigant International, Inc. More
information about Navigant can be found at www.navigantconsulting.com.
Except as set forth below, statements included in this press release which are not historical
in nature are forward-looking statements as defined within the Private Securities Litigation Reform
Act of 1995.Forward-looking statements may be identified by words including goals, anticipates,
believes, intends, estimates, expects and similar expressions. These statements are based
upon managements current expectations as of the date of this press release. The Company cautions
readers that there may be events in the future that the Company is not able to accurately predict
or control and the information contained in the forward-looking statements is inherently uncertain
and subject to a number of risks that could cause actual results to differ materially from those
indicated in the forward-looking statements including, without limitation: the timing and
successful integration of this acquisition; management of professional staff, including dependence
on key personnel, recruiting, attrition and the ability to successfully integrate new consultants
into the Companys practices; utilization rates; the successful expansion of and the increase in
the Companys service offerings and staff; conflicts of interest; and potential legislative and
regulatory requirements, approvals or changes. Further information on these and other potential
factors that could affect the Companys financial results are included in the Companys filings
with the SEC under the Risk Factors section and elsewhere in those filings. The Company cannot
guarantee any future results, levels of activity, performance or achievement and undertakes no
obligation to update any of its forward-looking statements after the date of this press release.
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