MedAssets Sees Profits Rise as it Preps Accuro Closing

MedAssets Inc. (Nasdaq: MDAS) said this week that its revenue cycle management segment and spend management business helped boost revenues and earnings for the quarter ended March 31.

The Alpharetta, Ga.-based provider of financial software and services for hospitals said it made $2.7 million, or 6 cents per share for common stock, on $58.8 million in revenues. Excluding certain items, it earned 11 cents a share. Analysts had estimated 9 cents a share, excluding certain items. During the year ago period the company had net income of $873,000 or 3 cents a share.

MedAssets said sales in its revenue cycle management business increased 81 percent to $25.1 million during the quarter. MedAssets management said the performance was expected and was the result of internal growth and acquisitions. The spend management segment, meanwhile, grew 18 percent to $33.7 million during the quarter.

MedAssets confirmed its 2008 outlook, excluding the impact of its pending acquisition of Accuro Healthcare Solutions Inc., saying it expects 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 are expected to range between $109 million to $113 million in 2008.

MedAssets also said it expects to complete it purchase of Accuro (“MedAssets Buys Accuro, Could Reach 3,300 Hospital Clients,” May 1), within 75 days. Last month MedAssets announced that it will buy Accuro for $350 million, including $100 million of debt.