The Outsource Group Expands Its Medicaid Eligibility Services Through Acquisition of Medstandard, Inc.

ST. LOUIS, MO September 9, 2009 — The Outsource Group, the nation’s leading healthcare receivables management firm, announced today the expansion of its Medicaid eligibility and patient financial counseling services through the acquisition of Medstandard, Inc.

Medstandard is a prominent provider of patient screening and Medicaid eligibility services based in Houston, Texas. Medstandard’s on-site screening services at hospital emergency departments and their case management protocol result in exceptional revenue recovery for hospital clients.

“As the number of uninsured and underinsured patients continues to grow to an estimated 56 million by 2013, hospitals are increasingly challenged to find ways to generate revenue to cover services provided. By combining Medstandard’s skills and services with our own, we can play a vital role for hospitals,” says Michael A. DiMarco, The Outsource Group CEO.

The Outsource Group has experienced staggering growth in the past five years through the acquisition of best-in-class companies and through strong organic growth. Nationally headquartered in St. Louis, Missouri, The Outsource Group has offices and operations centers from coast to coast, providing clients with the resources of a large company plus the individualized services and flexibility of a smaller firm.

“A key differentiator for us is that when we acquire a company, the owners of that company join The Outsource Group’s leadership team as shareholders and operators, bringing expertise and years of experience to the company and clients alike,” says DiMarco.

Medstandard’s founders, Howard Zorn and Donny Zamora, along with several other co-owners, will remain actively involved with The Outsource Group, providing ongoing support and leadership for the Medicaid eligibility service line.

“This is a great opportunity for us, but also for our clients,” says Zorn, “because we can now provide a broader range of revenue cycle management services to our current client base through the various Centers of Excellence of The Outsource Group.”

“Our employees will benefit as well,” adds Zamora, “because The Outsource Group has operations centers in Alabama, California, Louisiana, Massachusetts, Missouri, New York, North Carolina and Texas, giving them vast career opportunities — not only geographically, but also within different aspects of the industry.”

The Outsource Group continues to seek strategically aligned, best-in-class companies to further expand its services and local presence in markets across the country. Fueling this expansion, The Outsource Group recently completed a round of bank financing, while continuing a strong relationship with its capital partner, ClearLight Partners, LLC, a Newport, California-based private equity firm with $600 million under management.

Providing advisory and professional services for the Medstandard deal were Marion Financial, a leading M&A firm serving the financial services industry, for merger and acquisition advice and representation; Armstrong Teasdale for legal counsel; A. J. Gallagher for benefits; and BKD for accounting.

“This acquisition in a difficult economic environment was made possible through the assistance of our professional advisors and financial partners,” says DiMarco. “We are excited to move forward with an expanded Medicaid eligibility service offering, especially at a time when hospitals need it most.”