Cain Brothers - Press Release

Demise of the Back End? Transforming the Health Care Revenue Cycle

New York – February 27, 2008

Health care information technology (HCIT) has evolved over the past decade to the point where it can now successfully cope with many of the factors that have made the U.S. health care payment system, or revenue cycle highly inefficient. Large and small companies are pursuing new solutions and strategies and, in turn, creating opportunities for investors and health care operators.

The latest white paper in Cain Brothers’ Strategies in Capital Finance series, which is titled “Demise of the Back End? Transforming the Health Care Revenue Cycle,” discusses the confluence of recent HCIT and operating environment developments that increase the chances to improve the revenue cycle and how changes are beginning to transform revenue cycle management processes from a wholesale, back end approach to more of a retail, front end approach. In connection with this white paper, Cain Brothers studied 108 HCIT companies active in various portions of the overall revenue cycle.

Ray Falci, Managing Director of Cain Brothers said, “Companies involved in the health care revenue cycle and investors looking for new places to put money to work should consider opportunities created by the development of this retail capability, evolving technologies that bring efficiency to the wholesale process, expected continuing movement of workflow from the back end to the front end, demand for integration of the best-of-breed applications, and business models that incorporate software-as-a-service and services with technology.”

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Please visit the Research page on our website to access and download this report or email strategies57@cainbrothers.com to request a printed copy.

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Cain Brothers is an investment banking firm that focuses exclusively on the health care industry. Our clients include providers, payors, medical device and equipment companies, information technology companies, outsourcing companies, and financial sponsors. The firm has one of the largest teams of experienced bankers and traders on Wall Street dedicated to the health care industry. Operating out of offices in New York, Chicago, Houston, San Francisco, Atlanta, Indianapolis, Long Beach, and Sarasota, Cain Brothers creates custom-tailored, market-based solutions for the many strategic, financial, and operating challenges facing its clients. Cain Brothers’ venture capital affiliates, Health Enterprise Partners and CB Health Ventures, invest capital in fast-growing health care service and information technology companies.

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Contacts:

Ray Falci
212-981-6959
rfalci@cainbrothers.com

Jim Vaughan
212-981-6929
jvaughan@cainbrothers.com