Leon Medical Centers Health Plans Announces Acquisition of Miami-Based HMO By HealthSpring
Posted on: Friday, 10 August 2007, 00:04 CDT
HealthSpring, Inc. (NYSE:HS) ("HealthSpring"), one of the largest managed care organizations in the United States whose primary focus is the Medicare Advantage market, announced it has entered into an agreement to acquire Leon Medical Centers Health Plans, Inc. ("LMCHP"), a privately held Florida-licensed Medicare Advantage health maintenance organization currently serving more than 25,700 members in Miami-Dade County.
LMCHP will continue to operate under its current management and will maintain its exclusive relationship with Leon Medical Centers, Inc. ("Leon Medical Centers"), a healthcare provider with five facilities throughout Miami-Dade County. Leon Medical Centers is a family owned and operated business managed by the Leon family who have more than 60 years combined experience in managed care.
"This alliance brings with it the opportunity for LMCHP to expand its reach into other areas that have a high density of Hispanics in order to fulfill our mission to provide the highest level of health care to our members in an environment of respect, dignity and compassion while being sensitive to the cultural nuances of the population we serve. We look forward to reaching our growth potential, but more importantly continuing to serve our elderly and disabled by providing comprehensive health plans that are tailored to their unique needs," said Benjamin Leon, Jr., Founder and Chairman of the Board of Directors, LMCHP.
Based on the terms of the agreement, HealthSpring will acquire all of the outstanding capital stock of LMCHP for $355 million in cash plus an additional 2.7 million shares in HealthSpring stock that is dependent upon completion of two additional medical clinics by Leon Medical Centers.
"The acquisition of LMCHP gives HealthSpring an immediate and sizable presence in the Florida Medicare Advantage market. We expect the transaction to have a positive impact on our growth and margins going forward. Not only are we adding over 25,700 Medicare HMO members, but we are entering into a long-term partnership with Leon Medical Centers, which has an impressive history of serving the needs of Miami's Medicare beneficiaries. We believe that their tightly integrated model of primary and specialty care services delivered in a medical clinic setting is a proven example of where the industry will be moving for the delivery of medical care to seniors in this country," said Herb Fritch, Chairman, President and Chief Executive Officer of HealthSpring, Inc.
Immediately following the announcement, the companies disclosed the terms of the transaction to their employees.
"We believe our dedication to excellence and our patient-centric approach to care could have a positive effect on healthcare delivery systems throughout the country. We are hopeful that in partnership with HealthSpring we will be able to expand the Leon Medical Centers concept to regions outside of South Florida and further our commitment to the Hispanic Medicare population. HealthSpring's focus on Medicare managed care and commitment to high quality care is consistent with our own company philosophy to provide timely preventive care that is both compassionate and cost effective while staying focused on the ever-changing needs of our members," said Mr. Leon.
About HealthSpring, Inc.
HealthSpring is one of the largest managed care organizations in the United States whose primary focus is the Medicare Advantage market. The Company currently owns and operates Medicare Advantage and stand-alone Medicare prescription drug plans in Tennessee, Texas, Alabama, Illinois, and Mississippi. Effective January 1, 2007, HealthSpring began offering Medicare Part D prescription drug plans on a nationwide basis to persons in all 50 states who are eligible for Medicare. The Company also uses its infrastructure and provider networks in Tennessee and Alabama to offer commercial health plans to employer groups.
About Leon Medical Centers Health Plans, Inc.:
Leon Medical Centers Health Plans, Inc. is a privately held Medicare Advantage Organization with Part D prescription drug coverage, which is available to anyone enrolled in Medicare Part B and entitled to Medicare Part A due to age or disability. Leon Cares(TM) is a healthcare plan offered by Leon Medical Centers Health Plans to its more than 26,000 members. Leon Medical Centers Health Plans is the exclusive HMO for Leon Medical Centers, Inc., a healthcare provider with five locations throughout Miami-Dade County.
Source: Business Wire
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