• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Universal American Financial Corp.To Acquire Harmony Health

Posted on: Tuesday, 14 November 2006, 00:00 CST

Universal American Financial Corp. (NASDAQ: UHCO) announced today that it has signed a definitive agreement to acquire Harmony Health, Inc. ("Harmony"), a provider-owned company that operates GlobalHealth, Inc. ("GlobalHealth"), a Medicare Advantage and Commercial managed care plan in Oklahoma City, Oklahoma. Harmony Health is a majority-owned subsidiary of the Oklahoma City Clinic. The closing of the acquisition is subject to regulatory approvals and other customary conditions, and is expected to occur in the first quarter of 2007.

Founded in 2002, GlobalHealth currently has approximately 3,200 Medicare Advantage members with annualized revenue of approximately $30 million. Richard A. Barasch, chairman and CEO of Universal American, commented, "We are excited about this acquisition as it strengthens our position in providing health care solutions to the senior market and leverages the platform of our rapidly growing Medicare Advantage business through expansion in the state of Oklahoma. Being a provider-owned organization, GlobalHealth understands and appreciates the need to align provider incentives with the care management capabilities of the health plan, and ultimately, improving service to its members. This acquisition fits nicely with our Heritage model and, through our Senior Solutions Sales Centers, provides great access for our agents to a market with over 550,000 Medicare beneficiaries statewide."

Under the terms of the agreement, the Oklahoma City Clinic will enter a long-term agreement with Universal American to provide healthcare services to GlobalHealth members. In addition, Oklahoma City Clinic will retain the risk for commercial business under a global capitation arrangement.

Denise Suttles, CEO of the Oklahoma City Clinic, added, "Universal American represents the ideal partner for a locally-focused provider-owned organization. The management of Universal American thoroughly understands the Medicare Advantage business, and their focus on providers is unparalleled in the market. This allows the Oklahoma City Clinic family of care to grow and provide more for our patients. These are exciting times."

About Universal American Financial Corp.

Universal American Financial Corp. is a specialty health and life insurance holding company. Through its family of companies, offers a broad array of health insurance and managed care products and services, primarily to the growing senior population. Universal American is included in the NASDAQ Financial-100 Index, the Russell 2000 Index and the Russell 3000 Index. For more information on Universal American, please visit our website at www.uafc.com.

About Harmony Health, Inc.

Harmony Health, Inc. is a privately-owned holding company of the Oklahoma City Clinic, P.C. Founded in 1919 by six Oklahoma City physicians who believed in a more efficient method to deliver quality care, the Oklahoma City Clinic has been an innovative leader in Oklahoma healthcare for over 85 years.

Certain matters discussed in this news release and oral statements made from time to time by representatives of Universal American (including, but not limited to, statements regarding the acquisition proposal referred to above and whether such proposal or a strategic alternative thereto may be considered or consummated; statements regarding our expectations of Universal American's operating plans and strategies generally; statements regarding our expectations of the performance of our Medicare Supplement and Medicare Advantage businesses and other lines of business, including the prediction of loss ratios and lapsation; the adequacy of reserves; our ability to institute future rate increases; expectations regarding our Part D program, including our estimates of membership, costs and revenues; future operating results and references to the estimate of the accretion from recent acquisitions) may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Universal American believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Universal American's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Universal American and the statements contained in this news release can be found in Universal American's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, current reports on Form 8-K and annual reports on Form 10-K. For forward-looking statements in this news release, Universal American claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Universal American assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.

Source: Business Wire

More News in this Category