Bowstring Advises McKinnis, a Healthcare Focused Revenue Cycle Management Firm, in their Sale to Navigant Consulting

March 10, 2016 | Atlanta, GA

Bowstring Advisors (“Bowstring”) served as the exclusive financial advisor to Chicago-based McKinnis Consulting Services, LLC (“McKinnis” or “the Company”) in its recent acquisition by Chicago-based Navigant Consulting Inc. (“Navigant”). McKinnis is a provider of revenue cycle assessment, strategy, and optimization assistance for healthcare providers.

The addition of more than 70 McKinnis consultants complements Navigant’s existing revenue cycle management (RCM) capabilities as the healthcare landscape continues to evolve. The acquisition further enhances Navigant’s position as a leading provider of end-to-end RCM services, including assessment, electronic health records (EHR) risk mitigation, and optimization services.

“McKinnis is a market leader in revenue cycle management services, and now in combination with the breadth and depth of Navigant’s healthcare team, will be able to provide clients with an even richer set of offerings to optimize their operations,” said Julie Howard, Chairman and Chief Executive Officer, Navigant.

McKinnis is a market-leading, KLAS top-rated firm that delivers targeted strategies across all major EHR systems, assisting healthcare providers in achieving sustainable revenue cycle improvement through an integrated approach involving technology optimization and operational best practices. McKinnis’ clients range across a variety of provider types, including academic medical centers, multi-hospital health systems, physician groups, and community hospitals, among others. McKinnis’ leadership team includes its three founders, James McHugh, Timothy Kinney, and John Morris, who will become part of the Navigant revenue cycle leadership team.

“The McKinnis transaction is purpose-driven to expand our RCM capabilities at a time when health system margins are under greater scrutiny. McKinnis’ operational and technical expertise, streamlined methodologies, and outcome-based processes are best in class,” 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.”

“Recent legislation and market drivers have bolstered spending in the healthcare industry and increased demand for EHR optimization on the clinical side. Our EHR risk mitigation and optimization expertise, combined with Navigant’s clinical expertise, will create timely solutions for healthcare organizations. We are excited to join forces with Navigant to design innovative offerings that help our clients realize their goals,” said James McHugh, a Managing Director with McKinnis.

Under the terms of the purchase agreement, Navigant paid approximately $49 million in cash and $3 million in Navigant common stock at closing, and may pay up to an additional $10 million to the sellers based on the acquired company’s achievement of certain post-closing performance targets.

“The Bowstring team exceeded our expectations in evaluating and benchmarking our business, managing the marketing, and guiding us through the due diligence process. The team learned our complex business and personal needs very quickly and were able to narrow our focus to several outstanding firms and patiently guided us through the final selection process. In the end, we were able to select Navigant as a partner because they maintained our culture and will be leveraging our firm’s methodology, approach, and delivery,” said McHugh. He added, “Bowstring was sensitive to our tight timelines and managing the marketing and diligence process efficiently and flawlessly.”

Tom Donahue, Managing Director at Bowstring Advisors, said, “McKinnis is a great company with a great team of professionals focused on improving the Revenue Cycle Management of their client hospitals. We appreciated the opportunity to be able to advise them during the transaction.”

The Bowstring team exceeded our expectations in evaluating and benchmarking our business, managing the marketing, and guiding us through the due diligence process. The team learned our complex business and personal needs very quickly and were able to narrow our focus to several outstanding firms and patiently guided us through the final selection process.

James McHugh
Managing Director
McKinnis