IBJNews

Carmel-based company buys medical-billing firm

Back to TopCommentsE-mailPrintBookmark and Share

Zotec Partners, a fast-growing physician-billing management company based in Carmel, has expanded operations by acquiring a family-owned medical-billing firm based in Florida.

Zotec said Thursday that it closed on its purchase of Medical Business Service Inc. on Sept. 7.

Medical Business Service, or MBS, is among the largest privately owned medical billing providers for hospital-based physicians, with clients concentrated in 10 states including Georgia, Florida, South Carolina and Tennessee. The company, which has 100 employees and is based in Coral Gables, declined to disclose its annual revenue.

In May 2010, MBS hired Zotec to provide technology services, including claims transmission and electronic data interchanges. The sale of the company was a natural outgrowth of that partnership, said Bing Herald, who served as president of MBS since he and a brother bought the 51-year-old company from their father in 1986.

“We felt as though we wanted to consolidate, to take advantage of scaling, eliminate overlap and overhead and be more price-competitive,” Herald said in a phone interview.  “We also wanted to feel like we have our own technology to bring value to clients.”

Herald declined to share details about the sale price or how many employees would lose their jobs because of the merger.

Zotec officials declined to answer questions about the deal Friday morning.

Zotec CEO Scott Law, who founded the company in 1998, said in a prepared statement that the acquisition is an extension of the “technology alliance” the companies formed last year.

“We are coming together to get better, not necessarily bigger,” Law said. “Right now, both companies are just focused on doing our jobs and continuing our attention on securing the financial performance of mutual clients throughout a seamless merger transition.”

The Herald brothers will lead the company’s client-services efforts but will not have ownership stakes in Zotec, Bing Herald said.

In 2009, Law told IBJ that Zotec was on pace to hit $65 million in revenue that year and aimed to hit $100 million in revenue by the end of 2011. As of 2009, the company’s 367 employees were based primarily in Indiana and California.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
ADVERTISEMENT