Magellan Health has agreed to acquire Senior Whole Health (SWH Holdings), a privately held healthcare company in the US, for approximately $400m in cash.
SWH Holdings provides both Medicare and Medicaid dual-eligible benefits to over 22,000 members in Massachusetts and New York.
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The purchase price includes a $10m contingent consideration payment based on SWH Holdings’ Medicare plan in Massachusetts receiving 2018 Star Rating of at least four from Centers for Medicare & Medicaid Services (CMS).
The acquired entity’s Massachusetts plan achieved an overall 2018 Star Rating of 4.5 from CMS earlier this month.
The deal will allow Magellan to expand into the Massachusetts Senior Care Options (SCO) programme, as well as further boost its footprint in New York City’s managed long-term care (MLTC) market.
Magellan said that it has received regulatory approvals to merge its existing New York MLTC plan, AlphaCare of New York, and its newly acquired New York MLTC plan, Senior Whole Health of New York.
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By GlobalDataMagellan Health chairman and CEO Barry Smith said: “Since 2004, Senior Whole Health has maintained a strong reputation as a quality health plan serving individuals in both New York and Massachusetts, and we will continue to ensure that focus never wavers. This acquisition combines our companies’ expertise in the managed long-term care market allowing us to enhance our offerings to help members live healthy, vibrant lives.”
The deal is expected to close by the end of year 2017.
