NU Online News Service, June 1, 2004, 10:43 a.m. EDT – Universal American Financial Corp. has entered the Texas Medicare managed care market.[@@]
The Rye Brook, N.Y., senior insurance and long term care services company has completed previously announced plans to acquire Heritage Health Systems Inc., Houston, for $98 million.[@@]
Heritage Health was founded in 1995 and now generates about $130 million in annual revenue by administering Medicare managed care coverage for 16,000 residents of Texas.
Universal American paid for the deal by spending $33 million of its own cash and $65 million in cash drawn from a credit facility provided by a unit of Bank of America Corp., Charlotte, N.C.
Universal American also has announced efforts to enter the Medicare managed care markets in New York and Pennsylvania.