Navigant Consulting has acquired revenue cycle-focused McKinnis Consulting Services for $49 million in cash and $3 million in common stock, the companies announced on Monday. The deal means more than 70 of McKinnis' consultants will join Navigant, and all three McKinnis founders, James McHugh, Timothy Kinney, and John Morris, will join Navigant's revenue cycle leadership team.
Chicago-based McKinnis Consulting Services offers revenue cycle assessment services to clients including academic medical centers, health systems and physicians groups. Navigant is a global firm with clients in the healthcare, energy and financial services industries offering professional services in areas including financial planning, risk management and business process management.
"The McKinnis transaction is purpose-driven to expand our RCM capabilities at a time when health system margins are under greater scrutiny," said David Zito, managing director and Navigant healthcare segment leader. "The McKinnis professionals, which include the firm's founders, further complement our ability to help clients navigate through the disruptions in the healthcare sector."
McKinnis has worked with major health systems including Indiana's Parkview Health, which it helped manage through its Epic electronic health records integration, and John Muir Health in California, which it helped overhaul its revenue cycle systems. In fact, Mckinnis said it helped John Muir see a 98 percent increase in self-pay yield, 9 percent increase in third-party liability yield and a 20 percent increase in point-of-service cash collections.