The acquisition is Gulf Capital’s fourth technology-related investment to date.
Gulf Capital has acquired a majority stake in ACCUMED practise Management, the leading revenue cycle management (RCM) company in the GCC. The company post acquisition will continue to deliver its services under the current leadership and will be looking to expand its management team and add key executives to strengthen its operations.
ACCUMED leverages its proprietary technology and processes to help public and private healthcare providers in the UAE, KSA and Kuwait to improve medical documentation, enhance billing cycles, optimise revenues and accelerate collections. The firm is the first, and currently the largest, in the Middle East to offer RCM managed services, and has managed more than nine million medical claims worth over AED4.1 billion to date.
This latest acquisition represents Gulf Capital’s fourth investment in the technology sector. Gulf Capital has become one of the largest technology investors in the GCC, having injected to date over half a billion dirhams in regional technology, internet and ecommerce companies.
The RCM industry is expected to grow at a compound annual growth rate of over 20 per cent in UAE and the Kingdom of Saudi Arabia, as hospitals shift increasingly toward outsourcing non-core activities and reimbursement standards are streamlined. Currently in the UAE and KSA, up to 95 per cent of all insurance claims are processed in-house by healthcare providers in what can be a labour intensive and costly process. In more mature markets such as the US, up to 50 per cent of all insurance claims are outsourced to specialised RCM companies that have the scale and resources to invest in proprietary technology and highly trained staff. The GCC healthcare industry is expected to see a big shift towards the outsourcing of non-core RCM activities in line with the US market trends.