Firstsource acquires medical billing firm QBSS for $40Mn
MUMBAI, INDIA — Firstsource Solutions (Firstsource), an Indian business process management firm, has acquired Quintessence Business Solutions & Services (QBSS), an outsourced revenue cycle management (RCM) provider, for ₹327.8 crore (US$39.2 million).
The acquisition will bolster Firstsource’s healthcare vertical, enabling it to provide end-to-end RCM services to healthcare providers in the United States.
“The [U.S.] RCM market, which has a Total Addressable/Available Market (TAM) of more than $25 billion growing at 10-12% on a CAGR basis, relies on comprehensive backend solutions to unlock its potential,” said Ritesh Idnani, MD & CEO, Firstsource Solutions, noting that the deal will also boost the firm’s offshore offerings.
“We are excited to be part of Firstsource, an enterprise with considerable depth and reach in complimentary market segments. The possibilities of deploying combined solutions, shared workflows, and opportunities to implement technology driven solutions to the larger healthcare market is enticing,” said Nirmal Kumar Rajachandran, CEO, QBSS.
Expanding end-to-end RCM offerings for U.S. healthcare providers
QBSS, headquartered in Chennai, specializes in medical billing, coding, and collections for physician groups and healthcare intermediaries.
QBSS has managed up to $270 million in charges per month and collected $100 million in insurance payments for its clients. It recorded an operating turnover of $14.8 million in the fiscal year 2024, up from $11.6 million in 2023 and $9.7 million in 2022.
The transaction is expected to close by May 15 after receiving the necessary approvals. Upon completion, QBSS will become a wholly-owned subsidiary of Firstsource, and its U.S. subsidiary, Quintessence Health LLC, will become a step-down subsidiary.
Veda Corporate Advisors, a mid-market investment bank, advised QBSS on the transaction.
Firstsource, owned by the RP-Sanjiv Goenka Group, is a leading provider of business process management services spanning healthcare, banking, financial services, communications, media, and technology sectors.
With over 23,000 employees, the company has a global presence across the Americas, Europe, and Asia.
Firstsource ranked #35 in the OA500 2024, an objective index of the world’s top 500 outsourcing companies.
