Passport Expands National Claims Market Presence with Acquisition of Data Systems Group

Franklin, Tenn. - Passport Health Communications Inc., a leading provider of technology solutions and services that help hospitals and healthcare organizations streamline business operations and secure payment for their services, today announced that it has acquired Data Systems Group, a California-based provider of direct revenue cycle software solutions. The acquisition expands the geographic reach and capabilities of Passport's claims management operations, strengthens its range of revenue cycle solutions for healthcare organizations, and complements its leading market position in Patient Access and Payment Certainty.

Data Systems Group works with more than 200 hospital customers and 85 physician sites in 20 states, with a concentration in the western U.S. Data Systems Group brings extensive institutional knowledge of California Medicaid to Passport, having pioneered the development of electronically submitted claims to BlueShield Medicare throughout California.

"Combining Passport and Data Systems Group is a strategic move that enables us to offer a deeper and broader scope of claims solutions and services to our customers across the U.S. Data Systems Group has a full suite of products and services, a history of innovation, and a great reputation built on a wealth of experience in the California market," said Passport CEO Scott MacKenzie . "Data Systems Group also has a great reputation for customer satisfaction that is consistent with Passport's culture of putting the customer first. This acquisition strengthens our unique position as the only partner that healthcare organizations need for the entire revenue cycle, and underscores our commitment to offering a better, more comprehensive end-to-end solution than any other company."

"Passport is an industry leader with a national reach. We are proud of what we have accomplished in the past 40 years as Data Systems Group, and at the same time are very optimistic about the outlook for the future by joining Passport. Our company cultures are very similar in terms of innovation and focus on customer service and support. We look forward to bringing even more value to our customers as part of Passport," said Rob Stucker , COO of Data Systems Group.

Passport is recognized as the market leader in upfront solutions that help hospitals Achieve Payment Certainty for Every Patient™. Earlier this year Passport bought N.J.-based STAT Technologies and that company's technology platform added ambulatory clinical solutions to Passport's software suite to help healthcare organizations facilitate scheduling and physician order alignment.

With Data Systems Group and an expanded claims suite, Passport will continue to market its flagship platform, Passport eCare™ NEXT, as the healthcare industry's only fully integrated solution for the entire revenue cycle workflow, delivered through a single user interface from one company. The company now has more than 200 direct-to-payer claims connections, including Blue Shield of California. New or enhanced capabilities gained by Passport with the Data Systems Group acquisition include:

• electronic claims processing
• claims status monitoring
• remittance and payment processing
• payment analysis
• financial reporting
• automated bad debt logs

Passport executives said the transition and integration process will be seamless for customers and employees of both companies. Current Data Systems Group customers will continue to be supported without changes, and Passport will invest in maintaining and improving the Data Systems Group product suite. Current and future customers will benefit from having one partner for all their revenue cycle needs, from patient access and payment certainty to claims.
Passport will maintain operations at the Data Systems Group office in Sacramento, creating its sixth regional office in addition to the Passport corporate headquarters in Franklin, Tenn.
Financial terms of the transaction were not disclosed.