Accuro Acquisition Helps MedAssets Narrow Second Quarter Loss

MedAssets Inc. said Wednesday that it lost $1.6 million, or 3 cents per diluted share, during the second quarter ended June 30, 2008 primarily due to charges related to its purchase of Accuro Healthcare Solutions, Inc. in June. The net loss included $5.3 million in acquisition-related amortization expense, $3.9 million in a non-recurring interest rate swap cancellation charge, and a $2.1 million impairment of intangible assets primarily related to the acquisition of Accuro.

Performance, however, significantly improved for the Alpharetta, Ga.-based provider of financial software and services for hospitals. MedAssets (Nasdaq: MDAS) lost $2.3 million or 21 cents per diluted share in the second quarter of 2007.

Meanwhile, the Accuro acquisition contributed $5.1 million in net revenues to its revenue cycle management business during the period and helped to lift net sales for the division 94 percent to $31.3 million.

“The acquisition strengthened the Company’s comprehensive suite of revenue cycle and spend management software and service solutions, which are delivered to a customer base now totaling more than 3,300 U.S. hospitals, including more than 2,000 revenue cycle management hospital facility customers,” MedAssets said in press release announcing earnings.

For the six-month period ended June 30, 2008, the revenue cycle management division saw net revenues increase 88 percent to $56.4 million.

MedAssets raised its full year outlook to take into account the full impact of the Accuro acquisition. It now expects revenues to be between $270 million $276 million, which includes third and fourth-quarter contributions of $34 million to $37 million in net revenue from the Accuro business. The revenue cycle management business is expected to generate sales between $149 million and $153 million in 2008.

Previously, MedAssets said it expected sales to range between $230 million and $236 million and earnings to come in between 28 cents to 36 cents a share. Sales from its revenue cycle management business were expected to range between $109 million to $113 million in 2008.