Medical Transcription Billing Corp. has been selected as the primary bidder by the U.S. Bankruptcy Court for the Eastern District of New York to acquire all of the revenue cycle, practice management and group purchasing organization assets of Orion HealthCorp Inc. and 13 of its affiliate companies.
The management of Medical Transcription anticipates the deal to increase Medical Transcription's annualized revenues by at least 50%. Under the agreement, Medical Transcription would acquire most of Orion HealthCorp's assets, including customer contracts, accounts receivable, certain equipment, and goodwill, free and clear of all liabilities except for those that are expressly assumed.
In addition, the June 5 order of the U.S. Bankruptcy Court for the Eastern District of New York established certain bid protections for Medical Transcription, bidding procedures, notice requirements, and a timeline. The order also scheduled a final sale hearing for June 28 with regard to Orion HealthCorp's assets.
If other qualified bids are submitted, an auction will be conducted, in which case the terms of the asset purchase agreement would set the floor value for the auction. Approval of a final sale to either Medical Transcription or a competing bidder is anticipated to take place shortly after completion of an auction. The transaction is expected to close by early July.
