Humana Inc. has agreed to acquire PHP Companies Inc. from Covenant Health for about $245 million in cash.
PHP, which does business as Cariten Healthcare, provides or administers health coverage for a total of about 211,000 commercial Medicare and Medicaid plan members in eastern Tennessee.
Covenant, Knoxville, Tenn., Cariten’s parent, runs hospitals in eastern Tennessee.
Humana hopes to complete the Cariten deal by Dec. 31.
The deal is subject to approval by Tennessee insurance regulators, the Centers for Medicare and Medicaid Services, and federal antitrust agencies.