Coventry Health Care, Inc., (Coventry) has signed a definitive agreement
with the Sisters of Mercy Health System (Mercy) to acquire ownership of
Mercy Health Plans (MHP), a health insurance subsidiary with
approximately 180,000 enrolled members in Missouri and Arkansas. The
sale of MHP to Coventry is expected to be completed within the next 90
to 120 days, pending regulatory approvals.
MHP was established by Mercy in 1994 and has operations in several of
the markets served by Mercy, with a strong presence in St. Louis and
southwest Missouri.
“After giving thoughtful consideration to our future strategies as a
healthcare organization, Mercy’s board and leadership have determined
that our core mission is best served by focusing on providing healthcare
services to our communities,” said Lynn Britton, Mercy president and
CEO. “Likewise, MHP’s progress as a health insurance company will be
strengthened by being aligned with an organization focused solely on
serving the needs of health plan members.”
“I am pleased to announce this transaction which strengthens Coventry’s
presence in the Missouri market while also expanding our relationship
with a premier multi-state health system, Sisters of Mercy Health
System,” said Allen F. Wise, chief executive officer of Coventry. “This
acquisition reaffirms Coventry’s commitment to broadening its health
plan footprint and is consistent with our focus on our seven core
businesses. Mercy Health Plans’ businesses are ones that we understand
well and we are confident that they will increase shareholder value over
the long term.”
The majority of MHP’s approximately 420 co-workers will become employees
of Coventry as part of the transaction. Coventry operates as Group
Health Plan (GHP) for commercial and Medicare products and HCUSA for
Medicaid products in the St. Louis area and as Coventry Health Care in
other markets served by Mercy. Upon completion of the transaction,
Coventry will serve more than 1.2 million members in a six-state Midwest
region.
Health plan coverage for individuals and companies who are MHP members
will not change through the duration of their current contract periods
as a result of this transaction. Seniors covered by MHP’s Medicare
Advantage plans will continue to be covered under these plans.
Financial terms were not disclosed.
About Coventry
Coventry Health Care (www.coventryhealthcare.com)
is a diversified national managed healthcare company based in Bethesda,
Maryland, operating health plans, insurance companies, network rental
and workers’ compensation services companies. Coventry provides a full
range of risk and fee-based managed care products and services to a
broad cross section of individuals, employer and government-funded
groups, government agencies, and other insurance carriers and
administrators.
About Mercy Health
Plans
Mercy Health Plans, a subsidiary of the Sisters of Mercy Health System,
offers customized health benefit solutions, administrative services and
insurance coverage for employer
groups, Medicare eligible members, and individuals and families. Headquartered
in Chesterfield, Mo., Mercy Health Plans also provides a full spectrum
of healthcare management services, including health and wellness and
disease management programs.
About Sisters of Mercy
Health System
The Sisters of Mercy
Health System (Mercy) sponsors healthcare services in four states
including Arkansas, Kansas, Missouri and Oklahoma. Members include 26
acute care hospitals with more than 4,000 licensed beds, three heart
hospitals, a rehabilitation hospital, physician practices and a health
plan. Care and services are provided by 36,000 co-workers and 4,600
physicians who are employed or practice at Mercy facilities. Mercy is
the 8th largest Catholic healthcare system in the U.S. based on net
patient service revenue. Mercy is sponsored by Mercy Health Ministry, an
entity established by the Catholic Church to oversee the healing
ministry and Catholic identity of Mercy.
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