Armanino McKenna Increases Focus on Healthcare.

Business Editors

SAN RAMON, Calif.--(BUSINESS WIRE)--May 28, 2004

Addition of Veteran Staff and New Clients Positions CPA Firm as

a Force in Accounting and Consulting for Northern California 

Hospitals, Medical Groups and Doctors

Armanino McKenna LLP (http://www.amllp.com), a top-10 accounting & consulting firm, announced it has joined forces with Jim Karling, a 30-year veteran of healthcare accounting and consulting and founder of Karling & Associates, a well-known healthcare accounting firm.

The move, which migrates most of Karling & Associates' clients and three veteran accounting professionals -- including Karling as a senior advisor -- to Armanino McKenna's growing healthcare practice, positions the firm as a force in accounting and consulting services for the healthcare industry in Northern California.

Armanino McKenna's healthcare portfolio already included capabilities in serving practice groups, physicians' associations, university facilities, dental and optical practices, as well as many individual physicians. The addition of Karling & Associates' expertise in consulting and auditing for small and independent hospitals, extended care facilities, independent practice associations and other related clients gives the firm a strong core capability for a broad range of healthcare businesses.

Karling is joined at Armanino McKenna by veteran Karling & Associates employees Elizabeth Marek, audit manager, and Kymberly Stanoff, senior associate, taxation.

"We've added a braintrust in healthcare," says Bill Brause, audit partner in charge of healthcare for Armanino McKenna. "We're thrilled to have the deep experience and skills of Jim, Elizabeth and Kymberly on our team for the benefit of our clients."

Karling & Associates' track record of helping hospitals, independent practice associations (IPAs), and other healthcare organizations become more efficient and financially stable attracted a number of suitors and when a large national firm bought his practice in 1999, Karling stayed on as a partner along with most of his staff. But the buyer's recent decision to discontinue the practice he nurtured to success prompted Karling to take action. He approached Armanino McKenna about migrating the firm's clients and a number of senior staff members into Armanino's healthcare practice.

The timing was good because Armanino McKenna had just completed a survey that suggested there was a void in the Northern California marketplace in healthcare accounting, according to Joe Moore, managing partner. "In our survey we found out that of the six regional firms in Northern California that are in our peer group, only one has dedicated substantial resources to healthcare," says Moore. "We thought we'd seize the opportunity to provide more service to an underserved market segment."

Moore added that Armanino's capabilities matched up well with Karling's. "Our capabilities are complementary and we can leverage that to add value for our clients," says Moore. "Our client base includes many doctors and other medical professionals, as well as specialized medical, dental and optometrist practices so it made good sense to add the IPAs, hospitals, and specialized care facilities from Karling & Associates to our service capabilities."

Karling, who established his successful consultancy after a long career as partner in charge of Ernst & Young's health care practice, had been contemplating retirement but put his plans on hold indefinitely to create continuity for his clients and employees.

"I'm the consultant that won't go away," he says, adding that his firm's relationship with Armanino McKenna goes back a number of years. "We've worked together directly with quite a few common clients and I've always been impressed with the professionalism and talent in the firm. I'm very gratified that our clients can now tap Armanino's expertise in addition to ours."

Besides small and independent hospitals, an early focus of the Armanino McKenna healthcare team will be on delivering auditing, tax, consulting and accounting services to so-called sub-acute healthcare facilities such as those that provide living space and services for people who are mobile yet require significant daily assistance.

About Armanino McKenna

Armanino McKenna LLP (http://www.amllp.com) is a top 10 San Francisco Bay Area accounting & consulting firm and a top 100 firm nationally in terms of annual revenue. Besides healthcare, the firm specializes in serving the accounting and consulting needs of waste management companies, non-profit organizations, distribution companies, professional practices and educational institutions. Armanino McKenna employs 120 professionals and staff at offices in San Ramon and San Leandro, California.