Coventry Health Care Inc., Bethesda, Md., has agreed to pay about $1.8 billion in cash and stock for a company that manages care for workers’ comp plans.[@@]
Coventry is a traditional managed care company with 3.1 million health plan members in 15 markets in the Mid-Atlantic, Midwestern and Southeastern regions of the United States.
Coventry’s target, First Health Group Corp., Downers Grove, Ill., also manages commercial plans, but it may be better known for operating a national provider network and administering special plans designed for workers’ compensation programs.
Coventry and First Health hope to complete their deal by March 31, 2005.
The First Health deal will create a “truly national health benefits platform,” according to Allen Wise, Coventry’s president.