PracticeXpert Sells Transcription Business Unit; Focus Now on Medical Billing and Collections

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00001372-practicexpert-sells-transcription-busines/

PracticeXpert, Inc. (OTCBB: PXPT) yesterday announced the sale of its transcription business unit to Transcend Services, Inc. (Nasdaq: TRCR).

Transcend, headquartered in Atlanta, Georgia, is a nationwide provider of medical transcription services to health systems, hospitals, clinics and physician practices. Transcend has created Internet-based, speech recognition-enabled voice-to-text systems that allow its medical language specialists to securely and quickly produce high quality medical documents. Transcend’s wide range of transcription services securely receive, transcribe, edit, format and distribute electronic copies of physician-dictated medical documents from overflow projects to complete transcription outsourcing.

Commenting on the sale, Jonathan Doctor, president and CEO of PracticeXpert, stated, “Transcend is very much like PracticeXpert. They utilize leading-edge software applications to deliver transcription services, just as PracticeXpert utilizes leading-edge software applications to deliver our physician revenue management services. Allowing Transcend to focus on providing our customers with transcription services will allow us to focus on what we do best — outsourced billing and collections for medical practitioners.

“We consider this transaction much more than a sale of our transcription business unit. We see it as the beginning of a long-term partnership with Transcend. We intend to formalize a strategic marketing arrangement with Transcend under which they will be the transcription provider of choice to PracticeXpert customers, and Transcend will be able to offer our revenue management service, practice management systems, and electronic medical record systems to the thousands of physicians who currently use their services.”

Under the terms of the agreement with Transcend, PracticeXpert will receive up to $500,000, over three years, on an earn-out basis, with an initial payment on closing in the amount of $40,000.