ePLDT business process outsourcing (BPO) unit SPi yesterday announced it bought American medical billing company, Springfield Service Corp., for $44 million (P2.1 billion).

The purchase will support SPI ‘s expansion of its healthcare platform.

Ray C. Espinosa, ePLDT president said it was the largest acquisition for SPi, proof of the company’s plan to accelerate growth and strengthen its position in the BPO industry.

Springfield Service Corp., is the 10th largest player in the medical billing and revenue cycle management market in the US. It has 383 employees operating in 5 locations. It provides billing and accounts receivable management services for over $1.3 billion of physician charges annually.

SSC is estimated to generate in excess of $30 million in revenues over the next twelve months.

Ernest L. Cu SPi president and CEO said the acquisition of the US medical billing company would allow the company to penetrate in the US healthcare industry.

“We have been tracking companies in the medical billing space for some time with the goal of finding one to acquire whose corporate culture and values match our own. SSC fits the bill. Their annuity-based business nicely complements our existing Healthcare platform and provides an excellent entry point for us into this rapidly growing $25 billion industry.”

Cu went on to say: “The inclusion of SSC’s service offerings in our Healthcare portfolio allows us to further strengthen our relationships with the more than 400 hospitals, multi-specialty clinics and physician practices that we currently serve.”

SPI said the US healthcare industry accounts for 15 percent of US GDP and is the largest segment in the US economy.

In 2003, US healthcare expenditures reached nearly $2.0 trillion. Healthcare costs have continued to rise by 18 percent annually since then.

“The management team of SSC is equally pleased with the business combination,” stated Mike Beninato SSC president.

“Both SPi and SSC share a vision to reduce healthcare costs while improving quality through streamlining business processes, and improving patient care. This acquisition is tremendous news for our customers and employees, who will benefit from the resources available from SPi. We look forward to SSC’s continued growth and profitability in the years ahead.”

In February 2007, SPi disclosed that its setting aside more than P 5 billion for its capital expenditures this year to pursue acquisition and expansion plans.

SPi a BPO provider with offices and facilities across North America, Europe, and Asia with its sister company., Ventus.

SPi has 11,000 employees delivering a wide range of call center and with significant penetration in the legal, publishing and healthcare sectors.

In July 2006, the Philippine Long Distance Telephone co. information and communication technology unit, ePLDT Inc. has acquired the SPi Techologies Inc., for $135.34 million in cash.

In 2006, SPi’s strategic growth and operational expansion included the acquisition of CyMed, Inc. This acquisition enabled SPi to further strengthen its US delivery capability through the addition of 650 medical language specialists. SPi now has the most diversified healthcare delivery platform in the industry in US, Philippines, and India.

Source: Malaya Newspaper