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HAP to acquire Trusted HP
Posted on Tuesday, 11 June 2019 14:09
Health Alliance Plan (HAP) is buying US-based healthcare maintenance organisation (HMO) company Trusted HP- Michigan from Trusted Health Plan for an undisclosed sum.
The transaction is subject to regulatory approvals and is expected to complete in late summer 2019.
Headquartered in Michigan, Trusted HP provides managed care services for families located in Detroit, Wayne County, Oakland County and Macomb County.
The target has been operating as a HMO since 2000 and offers a range of activities, including clinic days, pharmacies and the Health Michigan plan, which allows patients in the area access to health care coverage at a low cost.
As a result of the transaction, the buyer re-enters Michigan’s Medicaid HMO service area known as Region 10.
HAP, which is owned by Henry Ford Health System, will add around 24 employees to its operations and could increase its Medicaid membership by up to 9,000 users.
Wright Lassiter, chief executive of Henry Ford, said that the transaction will allow the company to provide holistic care and coverage to Michigan’s population.
Established in 1956, HAP is billed as a non-profit health plan.
It has over 1,100 employees and 570,000 members and provides health coverage to individuals, companies and organisations.
HAP has a network which includes thousands of doctors and its HMO service area reaches 24 counties in Michigan.
For the financial year ended 31st December 2018, Henry Ford posted revenue of USD 5.85 billion, down from USD 5.98 billion in the preceding 12 months.
There have been 97 deals targeting direct health and medical insurance carriers announced worldwide since the beginning of 2019, according to Zephyr, the M&A database published by Bureau Van Dijk.
In the largest of these, Insurance Australia Group issued subordinated medium term notes worth AUD 450.00 million (USD 313.52 million).
Other targets include Insurance Unisalute, Humana and Centene.
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