Medical Transcription Billing, Corp. (MTBC) is a healthcare information technology (IT) company that provides its fully integrated suite of proprietary web-based solutions and related business services to a diverse field of healthcare individuals and entities specializing in more than 63 areas and spanning 40 U.S. states.
The company went public in July 2014, at which time it also acquired three competitors. Since then, MTBC has steadily expanded its portfolio with seven additional acquisitions of healthcare IT companies. Today, MTBC is an award-winning company whose Software-as-a-Service (SaaS) platform helps healthcare providers increase revenues, fine tune their clinical and business decision making, reduce administrative burdens, streamline workflows, and reduce operating costs. With a strong focus on R&D and innovation, MTBC is constantly developing new solutions to disrupt the healthcare IT industry, including a suite of mobile health apps for use by physicians and patients.
- EBITDA profitable healthcare IT company
Large, highly fragmented market
Highly experienced management team
Scalable, cost-efficient business model
Predictable recurring revenues
Aggressive, effective acquisition growth strategy
MTBC Integrated Solution
MTBC's product portfolio includes electronic health records, practice management, patient engagement and mHealth smartphone and tablet apps – all of which are fully supported by and integrated with the company's core managed billing service. In addition, the company offers an array of value-added services, including medical transcription, coding and business intelligence. The standard fee for its complete, integrated, end-to-end solution is calculated as a percentage of a practice's healthcare-related revenues, and is among the lowest in the industry.
mHealth – Extends the core components and benefits of the platform to the mobile environment
Electronic health record (EHR) – Allows physicians to create and review electronic clinical charts online
Practice Management (PM) – Unified, streamlined platform automates the labor-intensive day-to-day operations of medical offices.
Revenue Cycle Management (RCM) – Improves medical reimbursement process to accelerate and increase collections, reduce errors in submissions and streamline workflow; includes end-to-end medical billing, analytics, and related services.
As of June 30, 2016, MTBC's products and services were used in 43 states by approximately 1,880 providers (defined as physicians, nurses, nurse practitioners, physician assistants and other clinical staff that render bills for their services), representing approximately 770 practices practicing in approximately 68 specialties and subspecialties.
- 86% of revenue is an integrated solution fee as a percentage of payments collected by MTBC doctors
Effective rate is 5% of practice collections
Contract terms are one to three years, with auto-renewal
5% of revenue from optional chargeable services, including transcription, coding, and consulting
9% of revenue from clearinghouse, EDI and recovery services
The revenue cycle management (RCM) service industry is highly fragmented, with many local and regional RCM companies serving small medical practices. MTBC believes the industry is ripe for consolidation and that the company can achieve significant growth through acquisitions and partnerships. Management estimates that there are more than 1,500 RCM service providers in the United States and that no individual company has more than a 7% share of the market.
It is becoming increasingly difficult for traditional RCM companies to meet the growing technology and business service needs of healthcare providers without a significant investment in IT infrastructure. MTBC's strategy is to accelerate organic growth by partnering with EHR companies who do not offer RCM services, utilizing them as channel partners to offer integrated solutions to their customers.
MTBC has also entered into arrangements with industry participants including EHR providers and other healthcare vendors that lack a full suite of solutions. The company has developed application interfaces with several EHR systems to create integrated offerings.
MTBC's acquisition-based growth strategy encompasses four distinct, synergistic approaches:
- Acquiring RCM companies and then migrating the customers of those companies to MTBC's solutions
Partnering with smaller RCM companies to service their customers while paying them a share of revenue received
Partnering with EHR and other vendors that lack an integrated solution and bundling MTBC's solutions with their offerings
Selling MTBC solutions directly to healthcare providers practicing in ambulatory settings
MTBC's growth strategy also includes strategic partnerships with other industry participants, including electronic health records vendors, in which the partners refer customers to MTBC's managed billing and value-added services. While the company offers its own proprietary electronic health records and practice management software, its strategy includes providing integrated offerings utilizing third-party electronic health records while offering customers MTBC's RCM, practice management and mobile health capabilities.
- On July 28, 2014, the Company acquired Omni Medical Billing Services, LLC, Practicare Medical Management, Inc. and CastleRock Solutions, Inc.
On October 30, 2014, the Company entered into a revenue share agreement with Valiant Management Solutions, Inc., and on November 25, 2015 acquired the business
On July 10, 2015, the Company acquired SoftCare Solutions, Inc.
On September 1, 2015, the Company acquired Med Tech Professional Billing.
On February 15, 2016, the Company acquired Gulf Coast Billing Inc.
On May 1, 2016 the Company acquired Renaissance Physician Services.
On July 1, 2016, the Company acquired WFS Services, Inc.
On October 3, 2016 the Company acquired MediGain, LLC,.
All acquisitions were accomplished via asset purchase agreements.
In addition to its experienced team in the United States, MTBC employs a highly educated and experienced workforce of approximately 1,500 people in Pakistan, where labor costs are approximately one-half the cost of comparable India-based employees and one-tenth the cost of comparable U.S. employees, thus enabling MTBC to deliver competitively priced solutions.
The company's Pakistan operations accounted for approximately 32% of expenses for the three months ended June 30, 2016. Approximately 75% of those expenses were personnel-related costs. Because personnel-related costs are significantly lower in Pakistan than in the U.S. and many other offshore locations, MTBC's Pakistan operations provide a competitive advantage over many industry participants.
Each of the companies that MTBC has acquired or signed revenue-sharing arrangements with use domestic labor or labor from higher cost locations to provide all or a substantial portion of their services.
Notably, at the time of MTBC's acquisition of MediGain in early October 2016, MediGain employed approximately 150 U.S.-based employees, approximately 200 offshore employees in India and Sri Lanka, as well as several hundred India-based subcontractors.
Awards & Achievements
MTBC is ranked among the Deloitte Technology Fast 500 (2009, 2010, 2011, 2012); is a Microsoft® Certified Partner; and has been awarded the Surescripts® White Coat of Quality. Additionally, the company's mHealth app – available for smartphone and tablet devices - is ranked No. 1 on Apple Store and Google Play as the most downloaded app for ICD 9 to ICD 10 conversion.
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Successful Initial Public Offering
MTBC consummated an initial public offering of its common stock on July 28, 2014. It now trades on the NASDAQ under the symbol MTBC. MTBC completed its public offering of its non-convertible Series A Preferred Stock on November 19, 2015, which trades on the NASDAQ under the symbol MTBCP. This successful completion of two public offerings on NASDAQ creates a stronger platform for MTBC.
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2014 Edition Complete Health IT Certification
On December 20, 2013, MTBC WebEHR 2.0 achieved 2014 Edition Complete EHR Ambulatory ONC Health IT Certification, which assures that MTBC EHR is capable of supporting healthcare providers with both Stage 1 and Stage 2 meaningful use measures required to qualify for funding under the ARRA.
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MTBC's EHR Included Among Medical Economics Top 50 EHRs
In an effort to help physicians make purchasing decisions, Medical Economics unveiled an exclusive report on the top 50 electronic health record (EHR) systems in 2014. The report examines key metrics, including revenue, certification and whether it has met MU2 certification requirements for complete EHRs or modules. MTBC WebEHR was featured among the Medical Economics Top 50 EHRs ranking.
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Compliance With ISO 27001
ISO 27001 is an international standard published by the International Organization for Standardization (ISO), and it describes how to manage information security in a company. MTBC was certified with ISO/IEC 27001:2005 in December 2013 and has successfully transitioned to the latest revision of this standard, which was published in January 2015.
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Surescripts® White Coat of Quality Certified Solutions Provider
On January 30, 2013, MTBC's electronic prescribing solutions were awarded the 2012 Surescripts White Coat of Quality Award. The White Coat award recognizes that MTBC upholds the highest standards of prescription content quality in e-prescribing. The White Coat award certifies not only MTBC's robust offering but also its commitment to train its users on the effective use of its e-prescription technologies.
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ISO 9001:2000 Certification
On March 3, 2004, MTBC achieved ISO 9001:2000 certification, signifying that its processes and quality management systems meet rigorous industry requirements. The ISO 9001:2000 standard is an internationally recognized quality management system developed by the International Organization for Standardization (ISO).
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Deloitte Technology Fast 500
In 2012, MTBC was named a Deloitte Technology Fast 500 company. This award was announced in New York and is based upon Deloitte's recognition that MTBC is one of the fastest growing technology companies in the US. MTBC has the honor to be ranked among the fastest growing companies in the country for the four years in a row.
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Inc 500 | 5000 Company
In 2012, MTBC was honored by Inc. magazine with a place on the Inc. 500|5000 list. This was the third consecutive year that MTBC has been included in this exclusive ranking of America's fastest-growing and most innovative private companies. The list represents the most comprehensive look at the most important segment of the economy - America's independent entrepreneurs.
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Nominee for US Secretary of State's Award for Corporate Excellence
In 2012, MTBC was nominated for the US Secretary of State's Award for Corporate Excellence. The Secretary of State's Award for Corporate Excellence (ACE), established by the State Department in 1999, recognizes the important role U.S. businesses play abroad as good corporate citizens.
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NJ's 50 Fastest Growing Companies
In 2010, MTBC was recognized by NJBIZ as one of the 50 Fastest Growing Companies in New Jersey for the year. NJBIZ is New Jersey's leading business news source.
MTBC continues to explore opportunities accretive to corporate and shareholder value. The company relies on the expertise of a well-rounded and highly experienced management team to consistently innovate and keep pace with a global healthcare environment that enables transformational change in healthcare through technology.
Mahmud Haq - Chairman & CEO
Mahmud Haq is the founder and CEO of MTBC. Prior to founding MTBC, Haq served as CEO and president of Compass International Services Corporation (NASDAQ:CMPS), and as vice president of Global Risk Management for American Express (NYSE: AXP). Haq is a graduate of Bridgewater State College (Massachusetts) with a Bachelor of Science in Aviation Management. He has also earned an MBA from Clark University (Massachusetts) with a concentration in finance.
Stephen Snyder - President and Director
Stephen Snyder joined MTBC in September 2005 as general counsel, and later served as chief operating officer and then president in September 2011. Snyder is an attorney by background and his writings on healthcare law and practice management are regularly featured in print and electronic media. He received his Juris Doctorate from Rutgers School of Law - Newark, where he served as a senior editor of a law journal.
Bill Korn - Chief Financial Officer
Bill Korn joined MTBC in June 2013 as chief financial officer. He has served as CFO for six other businesses, including SnapOne and Antenna Software, where he enabled the business to grow at an 87% CAGR through a combination of acquisitions and organic growth. He also spent 10 years with IBM as a member of the senior management team that created IBM's highly successful services strategy in the 1990s. Korn graduated magna cum laude from Harvard College and received his MBA from Harvard Business School.
Medical Transcription Billing, Corp.
7 Clyde Road
Somerset, NJ 08873
3645 Marketplace Blvd.
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