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Charterhouse completes USD260m sale of Chamberlin Edmonds to Emdeon

Charterhouse Group, a New York-based private equity firm, has sold its portfolio company Chamberlin Edmonds to a subsidiary of Emdeon for USD260m in cash.

Headquartered in Atlanta, Georgia, Chamberlin Edmonds is a provider of government programme eligibility and enrollment services to over 200 acute care facilities in 30 states.

Emdeon is a provider of healthcare revenue and payment cycle management solutions.

The transaction has been financed through the use of unrestricted cash and borrowings under an amendment to Emdeon’s existing credit facility that was established simultaneously with the closing of the transaction. In connection with the credit facility amendment, Emdeon has entered into an incremental USD100m financing commitment with Citigroup Global Markets. 

Under Charterhouse’s ownership, Chamberlin Edmonds experienced organic growth through the expansion of its hospital customer base and the launching of complementary service offerings. In addition, it implemented process and technology initiatives, which served to automate the process of populating an uninsured patient’s information, resulting in higher approval rates, lower costs per submitted application and greater cash recovery for its customers. 

C. Taylor Cole, Jr., managing director at Charterhouse, says: “Chamberlin Edmonds is another example of our consistent strategy of partnering with seasoned executives and providing the financial and strategic resources necessary to help companies realize accelerated, profitable growth. We would like to thank Ulrich and his team for all the hard work and dedication they exhibited in leading Chamberlin Edmonds over the past several years. We are confident that the management team will have continuing success with Emdeon.”

“Chamberlin Edmonds has created a scalable technology-enabled service delivery platform that blends national reach and perspective with local delivery and knowledge,” adds T. Ulrich Brechbühl, president and chief executive officer for Chamberlin Edmonds. “By joining Emdeon, we are significantly better positioned to offer the full suite of tools, technologies, services and expertise required to build an optimized eligibility process, from screening through enrollment and cash recovery, to hospitals nationwide.”

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