NU Online News Service, Aug. 22, 12:17 p.m. – AMERIGROUP Corp., Virginia Beach, Va., a company that runs government managed-care programs, has signed a definitive agreement to acquire most of Physicians Healthcare Plans Inc., Coral Gables, Fla., for $121 million, or about $660 per major medical member.
PHP serves 184,000 members of Medicaid and State Children’s Health Insurance Program plans in 12 counties in central and south Florida.
PHP also runs a pilot home care program that’s supposed to help keep older state residents out of nursing homes, and it has some commercial and Medicare operations.
AMERIGROUP has agreed to acquire the Medicaid operations, the children’s health insurance operations and the home care program, but not the Medicare operations or commercial operations, AMERIGROUP says.
AMERIGROUP estimates the operations it is acquiring generate about $300 million in annual revenue.
AMERIGROUP hopes to complete the deal by March 31, 2003, and use cash on hand to cover half the cost of the deal. Cash from an existing credit facility should cover the other half, the company says.
AMERIGROUP also has operations in the District of Columbia, Illinois, Maryland, New Jersey and Texas. The proposed PHP acquisition is the eighth acquisition the company has announced.