AmeriChoice to Acquire Unison Health Plans
Combined Companies Will Serve More Than 2 Million People Across 20 States
Combination Extends AmeriChoice Existing Service Area, Creating New Market Growth Opportunities
AmeriChoice, a UnitedHealth Group (NYSE: UNH) company, today announced it has signed a definitive agreement to acquire Unison Health Plans, an organization exclusively dedicated to serving public sector health programs. On a combined basis, AmeriChoice and Unison would serve more than 2 million people across 20 states, including Unison’s operations in Pennsylvania, Ohio, Tennessee, Delaware and South Carolina.
Unison facilitates access to high-quality, cost-effective health care for traditionally underserved populations through its participation in state Medicaid, State Children’s Health Insurance Programs (SCHIP), Adult Basic Programs and Medicare Special Needs Plans. This transaction will strengthen and enhance the scale and scope of AmeriChoice’s government-sponsored plan offerings. Unison will complement AmeriChoice’s services in Pennsylvania and Tennessee, while expanding AmeriChoice’s offerings to Delaware, Ohio and South Carolina.
Rick Jelinek, chief executive officer of AmeriChoice, said, “Unison has an outstanding reputation, strong track record of growth, and extensive experience facilitating high-quality, cost-effective health care for its members. Combining the experience, capabilities and services of our two companies enhances our strategy of broadening access to beneficiaries in government-sponsored programs. We look forward to welcoming Unison’s proven management team and talented employees to the UnitedHealth Group family and working with them to serve our combined customer base.”
Dr. John Blank, M.D., Unison’s president and chief executive officer, stated, “AmeriChoice brings extensive resources and capabilities for our customers. We are proud of the access to quality care we provide to our members and our strong stewardship of government resources. Our capabilities will be enhanced by AmeriChoice’s experience and UnitedHealth Group’s many resources and innovations in health care delivery. I also believe that our talented group of dedicated employees will have expanded career opportunities with AmeriChoice and UnitedHealth Group.”
Unison provides government-sponsored health plan coverage to approximately 370,000 people through a network of 28,000 independent health care providers and a workforce of almost 1,000 employees. Unison projects 2007 revenues of approximately $950 million. Current Unison management will play a key role in the leadership of the combined businesses and in helping state and local government organizations to efficiently provide high quality health care to their constituents.
The transaction is expected to close by mid-2008, subject to required regulatory approvals and customary closing conditions. Purchase price and other financial terms were not disclosed for this all-cash transaction. UnitedHealth Group projects Unison’s results for the first year after closing will be marginally accretive to earnings per share.
About UnitedHealth Group
UnitedHealth Group is a diversified health and well-being company dedicated to making health care work better. Headquartered in Minneapolis, Minn., UnitedHealth Group offers a broad spectrum of products and services through seven operating businesses: UnitedHealthcare, Ovations, AmeriChoice, Uniprise, OptumHealth, Ingenix, and Prescription Solutions. Through its family of businesses, UnitedHealth Group serves approximately 70 million individuals nationwide.
AmeriChoice, the public sector health care unit of UnitedHealth Group, facilitates access to community-based, culturally-sensitive, quality health care for more than 1.6 million beneficiaries of Medicaid, Medicare and Children’s Health Insurance Programs in seventeen states across the country. AmeriChoice believes that health care cannot be provided effectively without consideration of the environmental factors that affect a person’s life, and through its unique Personal Care Model, takes a holistic approach to health care, emphasizing practical programs to improve its members’ living circumstances as well as their health. Visit www.americhoice.com for more information.
With years of steady growth, Unison has become a leader in public sector health plans, serving approximately 370,000 members and 28,000 providers in Delaware, New Jersey, Ohio, Pennsylvania, South Carolina and Tennessee. Unison provides high quality, cost effective health care and responsive customer service that empowers its members and providers to work together for better health. For additional information, visit www.unisonhealthplan.com.
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