RoundTable News

RoundTable Completes Portfolio Company Recapitalization

MedAssist Refinances Higher Cost Subordinated Debt and Pays Substantial Dividend to Shareholders

LAKE FOREST, IL, October 11, 2005 — RoundTable Healthcare Partners (“RoundTable”), an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today the completion of the recapitalization of its portfolio company MedAssist, Inc. (“MedAssist”).  MedAssist is a leading outsourced provider of patient eligibility, accounts receivable management and collections services to hospitals throughout the United States.  RoundTable acquired a majority interest in MedAssist in May 2003 from the company’s owner/founders.  The recently completed recapitalization consisted solely of new senior debt and enabled MedAssist to prepay its higher cost subordinated debt.  The recapitalization also funded a substantial dividend paid to shareholders.

“MedAssist has consistently generated strong earnings growth and free cash flow and, as a result, has reduced its leverage faster than expected,” said Joseph F. Damico, Founding Partner of RoundTable and MedAssist’s Chairman.  “This recapitalization directly results from the hard work of the MedAssist team, and in particular their successful integration of the November 2004 acquisition of Argent Healthcare Financial Services.  This transaction lowers MedAssist’s overall borrowing costs and allows shareholders to participate in the substantial value creation occurring at the company.”

“MedAssist’s recapitalization is evidence of the continued success of our partnership with RoundTable,” said Michael Shea, Chief Executive Officer and one of the original founders of MedAssist.  “RoundTable was instrumental in executing and financing the Argent acquisition and they initiated and led this recapitalization.  MedAssist has directly benefited from RoundTable’s unique combination of operating and transaction expertise.”

With approximately $100 million in annual revenues, MedAssist is one of the largest specialty providers of revenue cycle management services focused on the healthcare industry.  MedAssist operates three businesses that help hospitals improve their cash flow and profitability:

  • Patient Eligibility Services assists uninsured patients in qualifying for federal, state, and private health care insurance programs, directly enabling hospitals to collect payment for services for which they might otherwise remain uncompensated.
  • Outsourced Receivables Management offers highly customized receivables management services to health care providers ranging from project work to ongoing management of all non-delinquent receivables.
  • The Collections Division provides debt services for delinquent accounts.

As part of the recapitalization, MedAssist amended its current senior credit facilities led by Antares Capital.  Other senior lenders participating in the transaction included GE Commercial Finance Healthcare Financial Services and National City Bank.

“MedAssist is the third portfolio company from Fund I that has been recapitalized in the last year,” commented Lester B. Knight, Founding Partner and Managing Partner of RoundTable.  “With the proceeds from this dividend, RoundTable will return more than 50% of our investors’ total cost basis in MedAssist, which includes our incremental equity investment to fund the November 2004 acquisition of Argent.”

RoundTable had previously completed recapitalizations of both AMI Holdings and Excelsior Medical.  AMI Holdings, which was acquired in May 2003, was recapitalized in December 2004.  Excelsior Medical, which was acquired in June 2004, was recapitalized in June 2005.  “In all of these transactions we utilized only modest levels of senior debt and consciously decided not to maximize the total leverage available,” said Lester Knight.  “Even with our conservative approach to leverage we have returned approximately 50% of our investors’ cost basis in each of the three companies.  This is clear evidence that our operating and transaction expertise is delivering value to our investors and the owner/founders with whom we partner.”

RoundTable Healthcare Partners, Lake Forest, IL, is an operating-oriented private equity firm focused exclusively on the healthcare industry.  The partners of RoundTable have significant experience in managing, operating, acquiring and financing healthcare companies.  RoundTable partners with companies that can benefit from its extensive industry relationships and proven operating and transaction expertise.  RoundTable is currently investing from its two equity funds, the $400 million Fund I closed in March 2002 and the $500 million Fund II closed in March 2005.  More information about RoundTable Healthcare Partners can be found at