Billerica, MA – September 27, 2011– Orbograph Ltd., the subsidiary of Orbotech Ltd. (NASDAQ/GSM: ORBK), today announced that it has signed a definitive asset purchase agreement with Correct Claims Now, a privately held company that provides services in the field of Healthcare Revenue Cycle Management (RCM).
Today, many healthcare providers utilize a manual process for reconciling and posting payments which is cumbersome, costly and error-prone. The integration of CCN into Orbograph capitalizes on the best of both companies’ competencies to provide a full, end-to-end electronic solution for the efficient processing of payments between the healthcare provider and the payer. This includes identifying, matching and reconciling several complex, paper-based or electronic forms such as claims, explanation of benefits (EOB) and other data necessary to ensure accurate, timely, and automated posting of receivables into the provider’s practice management system.
“Orbograph has extensive field experience and strong operational capabilities in deploying effective recognition-centric automation solutions for mission-critical financial environments. CCN provides deep expertise and know-how in healthcare payments processing”, said Barry Cohen, General Manager at Orbograph. “By joining forces, we can achieve an unprecedented level of revenue cycle efficiency that will provide critical advantages for providers including: lowering the cost of collecting and posting a payment, reducing aging of receivables, and increasing reimbursement amounts.”
By entering into the area of healthcare RCM, Orbograph is investing in an additional, synergistic line of business that builds upon its core technologies and knowledge and fully complements its existing solutions portfolio and customer base in the financial industry. Orbograph, whose solutions are utilized in the processing billions of checks and related documents annually, remains fully committed to its core check processing business. The Company expects that this acquisition will bring expanded revenue potential for its clients and business partners, including many large top-tier U.S. banks, by enabling them to provide new payment processing services for their medical lockbox customers.
Mr. George Bryan, President of CCN, commented: “We are confident that combining our two companies will provide a sustainable growth opportunity for our business and greatly benefit the market with ground-breaking solutions that fill a distinctive void in healthcare revenue cycle management. Both Orbograph and Orbotech have excellent reputations as industry leaders and innovators. We look forward to being part of their highly respected professional team.”
Commenting on the announcement, Mr. Amichai Steimberg, Chief Operating Officer of Orbotech Ltd. and Board Member of Orbograph Ltd., said: “This acquisition by Orbograph is consistent with our company’s growth strategy of diversification into promising new areas that leverage our core expertise, technologies and infrastructure. We look forward to Orbograph realizing the full business potential of this emerging market.”
Financial terms of the acquisition, expected to close today, are undisclosed. Following completion, CCN will be fully integrated into Orbograph.
Correct Claims Now (www.correctclaimsnow.com) is a Dallas, Texas based specialty service company that uses public and private databases, proprietary algorithms and methodology, and innovative technological applications to file claims, review inbound payments for accuracy, scrub claims for proper PPO discounting to ensure proper and timely collections on a pre-file basis. It offers paper EOB conversion to electronic ERA formats such as 835, PPO Contract management services, archive storage and workflow to tie all healthcare provider records together in one easy to access, secure environment.
Orbograph (www.orbograph.com) is a leading provider of recognition-centric software and services for the check processing industry. Orbograph’s innovative technologies are in use in over 1000 financial institutions and service bureaus, processing billions of checks and related documents annually. Through its check processing solutions which include; automation, fraud prevention, and data mining for marketing, Orbograph enables clients to envision more for their organization by reducing costs, managing risk and driving revenue growth, while ensuring that achieving more is a reality.
Orbotech Ltd. (NASDAQ/GSM: ORBK) has been at the cutting edge of the electronics industry supply chain, as an innovator of enabling technologies used in the manufacture of the world's most sophisticated consumer and industrial products, for over 30 years. The Company is a leading provider of yield-enhancing and production solutions, primarily for manufacturers of printed circuit boards and flat panel displays; and today, virtually every electronic device is produced using Orbotech technology. The Company also applies its core expertise and resources in other advanced technology areas, including character recognition for check and forms processing and solar photovoltaic manufacturing. Headquartered in Israel and operating from multiple locations internationally, Orbotech's highly talented and inter-disciplinary professionals design, manufacture, sell and service the Company's end-to-end portfolio of solutions for the benefit of customers the world over. For more information visit www.orbotech.com.
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