Receivables Management Corp. of Linthicum, which collects medical bills on behalf of hospitals and doctors, has been acquired by AllMed Financial Corp. of Indianapolis, company officials announced yesterday.
The acquisition makes AllMed one of the five largest medical receivables management companies in the United States. AllMed is a subsidiary of the Associated Group, a $3.5 billion network of insurance and financial services companies.
Harold J. Johnson, president of Receivables Management Corp., said he will remain in charge of the company, which employs 65 workers and has annual revenue of about $4 million.
Receivables Management was founded in 1981 by Richard Tamburello, who has since left the company, Mr. Johnson said.
"The company started out as a bad-debt collection agency," Mr. Johnson said, then evolved into a health-care receivables operation that collects bills before they become bad debts. The company receives a percentage of the bill or a flat fee, he said.
Joseph C. LaMagna, president and chief executive of AllMed, said the Linthicum-based company provides "collections management expertise and presence in strategically important market niches -- hospitals and emergency rooms."
AllMed declined to disclose terms of the acquisition.
Receivables Management is the third such acquisition this year by AllMed. The company also purchased St. Louis-based Frenz Data Services Inc. and Assured Inc., of Hackensack, N.J.