Navigant Consulting Inc. ( NCI - Analyst Report ) recently announced its acquisition of Paragon Health, a move that takes its healthcare consulting practice a step ahead. Paragon Health is a leading national physician practice management and consulting firm specializing in Cardiovascular care. Financial terms of the deal was undisclosed. In October last year, Navigant acquired another healthcare consulting group EthosPartners.

Opportunities associated with healthcare reform continue to drive demand for Navigant’s services as the industry seeks expertise for profitability and greater regulatory pressure for compliance. Hence, we believe the acquisition fits in with Navigant’s product portfolio and is in sync with its key long-term strategy. With the addition of Paragon Health, Navigant is expected to achieve its operational goals and see further opportunities associated with healthcare reform.

Paragon brings 12 consulting professionals with more than 20 years of managerial experience in assisting physicians and hospitals nationwide. The company’s president will also play a pivotal role in Navigant Healthcare. This should encourage the other top bosses in the Navigant team.

In the second quarter of 2011, Navigant’s energy, healthcare and economics practice was up 16% year over year on a combined basis. From a segmental standpoint, consulting saw an impressive utilization rate at 81% and the highest revenue in over three years. Energy and healthcare accounted for 75% of that segment. Management is benefiting from the unique combination of both hospital and physician services’ consulting skills in the healthcare unit.

Navigant is on an acquisition spree since 2005 to boost its expertise in every arena of its business. It acquired A.W. Hutchison & Associates and the Canadian forensic accounting and litigation consulting practices of Kroll Inc. in 2005, Precept Programme Management in 2006, Abros Enterprise Limited Bluepress Limited, all the assets of AMDC Corp. and Troika (U.K.) Limited in 2007, Chicago Partners LLC and The Bard Group LLC in 2008, Morse PLC’s Investment Management Consulting Business and Summit Blue Consulting in 2009, Empiris LLC, Daylight Forensic & Advisory LLC and EthosPartners Healthcare Management Group in 2010, and Ignited Discovery in July 2011.

Navigant currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. However, we are maintaining our long-term Outperform rating on the stock. Some of the competitors of Navigant include CBIZ Inc. ( CBZ - Snapshot Report ) and Gartner Inc. ( IT - Snapshot Report ) .