It’s the first business day of 2016, and we’ve already had our first consolidation of the new year in health IT consulting.
Monday, Navigant Consulting said it has acquired smaller rival McKinnis Consulting Services in a deal worth as much a $62 million. Navigant said it paid $49 million in cash plus $3 million in common stock upon closing, and will owe as much as $10 million more if McKinnis consultants meet performance targets, the acquiring company said.
McKinnis, which, like Navigant, is based in Chicago, brings specific expertise working with Epic Systems EHR clients. As part of the acquisition, more than 70 McKinnis consultants are joining Navigant, adding additional revenue-cycle management, assessment, strategy and optimization capabilities to Navigant’s portfolio, said the companies.
“The McKinnis transaction is purpose-driven to expand our RCM capabilities at a time when health system margins are under greater scrutiny,” David Zito, Navigant’s healthcare managing director, said in a statement. “The McKinnis professionals, which include the firm’s founders, further complement our ability to help clients navigate through the disruptions in the healthcare sector.”
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