Charterhouse Group Partners with MTS Health Investors and Highlander Partners to...

Thu Jun 5, 2008 8:34am EDT

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Charterhouse Group Partners with MTS Health Investors and Highlander Partners
to Acquire Chamberlin Edmonds & Associates, Inc., a Leading Provider of
Eligibility Services to Hospitals

NEW YORK, June 5 /PRNewswire/ -- Charterhouse Group, Inc. ("Charterhouse")
a New York-based private equity firm that has backed entrepreneurs and
supported growing middle-market companies since 1973, announced today that it
has partnered with Highlander Partners ("Highlander") and MTS Health Investors
("MTS") to complete the acquisition of Chamberlin Edmonds & Associates, Inc.
("CEA" or the "Company"), the market leader in providing specialized
eligibility determination services to America's hospitals.
    CEA guides uninsured patients through complex application processes to
secure government and community reimbursement for uncompensated medical care
expenses. Specializing in federal and state disability programs, the Company
primarily serves acute care hospital customers. Using an on-site, patient-
centric approach supported by application resolution centers, CEA manages the
entire eligibility determination process from initial patient referral through
the post-application resolution process.  Founded in 1986, the Company
currently has contracts in 27 states and works claims nationwide through its
regional network of resolution centers.
T. Ulrich Brechbuhl, Chief Executive Officer of CEA, stated, "Charterhouse
is a firm with substantial experience in partnering with management teams of
leading services companies.  With the capital resources and industry knowledge
from Charterhouse, Highlander and MTS, we are now positioned to generate
substantial organic growth, expand our service offerings and pursue strategic
C. Taylor Cole, Jr., Partner at Charterhouse, stated, "Led by Ulrich and
his exceptional management team, CEA provides tremendous value to its hospital
customers. Without CEA's services, many hospitals would forego much needed
financial resources that help sustain their ability to provide critical
healthcare services to communities across the country.  We are quite excited
to help CEA continue its impressive growth, and we look forward to working
with Highlander and MTS who both have significant knowledge and relationships
that are highly strategic to CEA."
    Founder Judith Starkey, Mr. Brechbuhl and Executive Vice Presidents Kirk
Reid and Brian Sadler continue as significant shareholders in the Company.
    Charterhouse Operating Partner, Christopher J. Garcia will serve as
Chairman of the Board of Directors of CEA.  Mr. Garcia has extensive
experience in building and leading healthcare and business services companies.
He previously founded and built National Healthcare Resources, which was sold
in 2001.  Since joining Charterhouse in 2003, Mr. Garcia has served as
Chairman of three Charterhouse portfolio companies, Lason, Inc., a business
process outsourcing company which was successfully sold in 2007, Camelot,
Inc., a behavioral health and alternative education services provider and
Upstream Rehabilitation, Inc., an outpatient rehabilitation services provider.
    Proskauer Rose LLP served as legal advisor to Charterhouse on this
    GE Healthcare Financial Services served as Arranger and Administrative
Agent and with CIT Healthcare provided the senior financing for the
    Robert W. Baird and Co. acted as exclusive financial advisor to the
selling shareholders of CEA on this transaction.
    About Chamberlin Edmonds:
    Headquartered in Atlanta, Georgia, Chamberlin Edmonds and Associates, Inc.
serves as patient advocates and provides comprehensive eligibility
determination services for hospitals, governments and managed care
organizations nationwide. The Company currently provides contracted
eligibility determination services to over 160 customers in 27 states and
guides patients through complex application processes to secure government and
community reimbursement for uncompensated medical care expenses. Chamberlin
Edmonds has over 20 years of healthcare experience, with six regional offices
in the U.S. and more than 650 employees.
    For more information on CEA, please visit
    About Charterhouse Group:
    Charterhouse Group, Inc. is a private equity firm with over three decades
of experience in building leading middle-market companies. Established in
1973, Charterhouse has invested in excess of $2.0 billion in equity and
established over 100 platform companies with a focus in the Healthcare
Services, Business Services and Consumer Products and Services sectors.
    For more information on Charterhouse, please visit
    About Highlander:
    Highlander Partners, L.P. is an investment firm based in Dallas, Texas
that manages assets across a variety of investment types with a significant
portion of its funds allocated for direct private equity investments.
Highlander Partners primarily focuses on healthcare investments, but also has
expertise in basic manufacturing, performance chemicals, food ingredients and
other sectors.
    About MTS:
    MTS Health Investors, LLC, located in New York, is a healthcare private
equity firm that makes equity investments in the buyout, recapitalization or
growth financing of healthcare operating companies.  MTS focuses on businesses
that operate in certain services sectors of healthcare including managed
care/health insurance, providers of healthcare services, distributors of
medical products and providers of outsourced services to the healthcare
industry.  The firm also invests in manufacturers of low-technology medical
    For further information on MTS, please visit
SOURCE  Charterhouse Group, Inc.

David G. Hoffman, Partner, +1-212-584-3234, C. Taylor Cole, Jr., Partner,
+1-212-584-3212, Christopher J. Garcia, Operating Partner, +1-212-584-3236,
all of Charterhouse Group, Inc.; or Dan Jacobs, +1-212-232-2227, of Broadgate Consultants
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