News | June 02, 2009

Premier Healthcare Alliance Acquires Phase 2 Consulting

June 2, 2009 - In a move to strengthen its consulting solutions division and provide resources to meet increasing consulting demand, Premier Healthcare Alliance acquired Phase 2 Consulting, a consulting services to hospitals and health systems.

The acquisition of P2C, a division of RehabCare Group, Inc. will complement Premier Consulting Solutions (PCS), as well as provide resources to help meet the growing demand for PCS’ services. In 2008, PCS added more than 60 new customers, along with 225 new customer engagements.

According to Susan DeVore, Premier’s incoming president and CEO, “In evaluating this opportunity, we were guided by our goal of transforming American healthcare to make it the safest, most effective and efficient system in the world. We believe that P2C’s strengths complement Premier’s capabilities and will help create new opportunities for knowledge-sharing among our alliance hospitals, as well as for the development of new products and services.”

P2C offers expertise and consulting capabilities in the areas of revenue cycle improvement, including RAC (Recovery Audit Contractor) readiness and charge capture, strategic planning and service line analysis. Headquartered in Salt Lake City, Utah, P2C has an additional office in Austin, Texas.

“Combining Phase 2’s longstanding reputation for strategic solutions with Premier’s tradition of cost and quality improvement offers a new level of support for a healthcare industry undergoing dynamic change,” commented Dr. John Short, RehabCare president and CEO, who founded P2C in 1986. “The synergies created by this union allow Premier to enhance and expand its capabilities to assist its hospital members in all areas of performance improvement, from enhancing revenue to efficient management of key cost areas of labor and supplies to improving quality performance.”

“Consulting represents a significant growth area for Premier,” said Wes Champion, PCS senior vice president. “Given the issues hospitals are facing in the current economic environment, we expect demand to continue to grow, especially in the areas of transformational consulting, revenue cycle improvement, supply chain efficiency and labor management. The combination of our two organizations gives us deep expertise in the full spectrum of hospital operations and allows us to meet the growing needs of our hospitals. This acquisition allows PCS to quickly ramp up the capacity and skills necessary to meet anticipated demand.”

Revenue growth for PCS is forecast to be more than 30 percent for FY2009, on top of 22 percent growth in the prior year.

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