Receivables Management Firm Kadent Acquires Hospital-Owned Mutual Hospital Services

MHS - KadentKaulkin Ginsberg Anticipates Increased Hospital Divestitures of Receivables Management Businesses

Bethesda, MD: March 1, 2007 – Kaulkin Ginsberg Company announced today that Kadent Corporation (formerly ARM Holdings, Inc.), a leading provider of receivables management services, has acquired substantially all of the assets and assumed certain liabilities of Mutual Hospital Services, Inc. (MHS). Terms of the transaction were not disclosed. Kaulkin Ginsberg initiated the transaction and served as advisor to MHS.

“We are delighted to have brought MHS together with Kadent. The combined resources and outstanding reputation of both companies creates a compelling healthcare-focused accounts receivable management platform” said, Michael Lamm, Associate of Kaulkin Ginsberg and lead advisor on the transaction. “Healthcare ARM companies are attracting the interest of strategic and financial buyers in the current market, so the timing is right for hospitals who wish to divest.”

Established in 1958, MHS is a not-for-profit 501 (e) corporation that provides contingency collection services to the healthcare industry. MHS was principally owned by three Indianapolis-area hospitals: Clarian Health Partners, Community Hospitals of Indiana, and Sisters of St. Francis Health Services. In addition to the principal owners, MHS serves more than 60 healthcare facilities in Indiana, Kentucky, Illinois, and Ohio.

With Kadent’s nationwide receivables management services, the combined company will serve nearly 800 clients, process approximately $1 billion in placements over the next year, and employ nearly 200 people in three locations.

“The MHS transaction provides us with an opportunity for accelerated growth, a substantial geographic increase in the Midwest market, and adds a number of prestigious healthcare clients to our growing portfolio,” said Bruce Colburn, Kadent President and Chief Executive Officer.

MHS Chairman Charles Meadows added, “We were careful in selecting a company to assume the receivables management responsibilities entrusted by our clients to MHS for nearly 50 years. Overall, we are very pleased with the outcome of this transaction and Kaulkin Ginsberg’s ability to help us identify and consummate a transaction with such a strong receivables management company.”

About Kadent Corporation
Kadent provides receivable management solutions from its three principal businesses: outsourcing healthcare business office operations (Kadent Healthcare Corp.), traditional collection agency services to the healthcare, government and utility industries (Accounts Recovery Bureau, Inc.) data analysis/management and processing services (Kadent Technologies). Read more at www.teamkadent.com.

About Kaulkin Ginsberg
Kaulkin Ginsberg is the leading strategic advisor to accounts receivable management and related business services companies, helping owners and executives succeed in their efforts to analyze, grow, or exit their businesses. Services include merger, acquisition, and valuation advice; market research; debt purchase and sales advice; operational consulting; and executive search. Kaulkin Ginsberg’s media division publishes the most popular sources of timely industry information such as insideARM.com(TM) and The ARM Insider(TM). Kaulkin Information Systems provides secure, affordable document management and workflow systems. Read more about Kaulkin Ginsberg at www.kaulkin.com.

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