Elgin-based Healthcare Financial Resources has acquired PARA HealthCare Financial Services in a deal intended to extend HFRI’s revenue cycle capabilities by incorporating front-end reimbursement, pricing, coding and contract management competencies into the company’s advanced AR solutions. HFRI is backed by Housatonic Partners, a San Francisco and Boston-based private equity firm.

“We are excited about joining forces with PARA,” HFRI President and CEO Jerry Connelly said in a statement. “Like us, they’ve developed an extremely powerful set of revenue cycle tools that rely both on automation and staff expertise to help improve reimbursement and optimize hospital margins. Together, we’re delivering an unmatched revenue cycle solution that will further reduce AR cycle time and help providers generate more revenue.”

PARA Founder and President Peter A. Ripper, who will continue to lead PARA with his management team, expects the deal to enable providers to monitor the entire inner workings of their billing and AR processes. This would optimize revenue cycle integrity and improve patient satisfaction with increased pricing transparency.

PARA’s solutions include the PARA Data Editor (PDE), a web-based single source and cloud computing solution that provides a central platform for managing all primary revenue cycle functionalities, including code book subscriptions, charge master guidelines, current and historic compliance information and hospital-specific revenue cycle data.

HFRI utilizes proprietary intelligent automation and staff specialization to efficiently process all claims, regardless of size or age, for hospitals nationwide. Greenberg Advisors, an investment bank specializing in RCM and Healthcare IT, acted as the financial advisor to PARA on the transaction.