Meritain Health Acquires CBSA PERFORMAX
Amherst, NY, December 5, 2006 – Meritain Health, Inc., a leading provider of health plan management services and a division of health care services company Prodigy Health Group, has announced the acquisition of CBSA PERFORMAX. The acquisition doubles the size of Meritain Health, creating the nation’s largest privately held manager of health benefits plans. Financial terms of the transaction were not disclosed.
The combination of Meritain Health and CBSA PERFORMAX brings together two companies that are passionately dedicated to helping employers control the long-term cost of health care while providing superior customer service and flexibility. The combined company will operate under the Meritain Health name and maintain CBSA PERFORMAX’s presence in Baltimore and Minneapolis, as well as its regional sales and service offices. In total, the combined company has offices throughout the country, over 1,350 employees, 1,400 clients and over a million members nationally.
The announcement reflects the considerable consolidation underway in the healthcare services industry. It follows Meritain Health’s August 2006 acquisition of Weyco, Inc., a third party medical benefits administrator, as well as the merger between Corporate Benefit Services of America (CBSA) and PERFORMAX, also in August 2006.
Elliot Cooperstone, CEO of Prodigy Health, said, “This acquisition is an important step as Meritain Health pursues its continuing strategy of controlled expansion through acquisition and the delivery of innovative products and services. Meritain Health and CBSA PERFORMAX each have a terrific history of providing intimate, local service while building capabilities on a national scale to ensure our clients have access to the most compelling products and services available. Together we will build on that legacy.”
Jacob L. Canova, President and CEO of CBSA PERFORMAX, will become Chairman and CEO of Meritain Health. Mr. Canova said, “We are pleased to bring together the very talented management teams, employees, and value-added products and services of Meritain Health and CBSA PERFORMAX. Both of our companies are completely committed to helping our employees grow and succeed, and together we will continue to work tirelessly to reward our clients for their confidence in us.”
Meritain Health and CBSA PERFORMAX have had an excellent relationship for the past eight years, as Meritain Health has provided claims services for PERFORMAX clients. The combination strengthens both companies’ objective of offering mid-size employers comprehensive, fully integrated health benefit services, including the design of customized, flexible plans that incorporate advanced cost management strategies.
Mr. Cooperstone added, “Health care is a local issue and to be successful in today’s rapidly evolving health care environment, we need to be where our clients are. That’s why we’re committed to delivering our services via regional processing centers and locating our sales and service offices close to our clients. The combination of Meritain Health and CBSA PERFORMAX will benefit our clients by creating one of the most extensive footprints in our industry.”
Meritain Health also announced that Ian Gordon has been named President and Chief Operations Officer, and Steve Adamson has joined the company as Senior Vice President and General Manager of the Minneapolis office. Mr. Gordon was formerly Chief Operations Officer of Concentra Network Services, and Mr. Adamson most recently was Vice President-Enterprise Business Operations at USAA.
Goldman, Sachs & Co. arranged financing for the transaction.
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About Meritain Health
Meritain Health is the country’s largest independent provider of services for self-funded health plans. Meritain Health serves over 1,400 self-funded clients and over a million members nationally. The company provides plan administration, innovative wellness, medical management, disease management, network management, and cost management services. Meritain Health is also a pioneer and now the leading independent provider of Consumer Directed Health Plans. Meritain Health employs over 1,350 people, with headquarters in Amherst, NY and regional offices in 28 cities across the country. http://www.meritain.com
About Prodigy Health Group
Prodigy Health Group is a health services holding company. Prodigy Health Group operating companies provide benefits management, total health management, provider network services and insurance services to self-funded employers, managed care companies and insurers. Prodigy Health companies serve over 3.5 million members across all industry sectors and Prodigy Health Group is continuing to pursue an aggressive growth strategy through synergistic health services acquisitions and organic growth. http://www.prodigyhealthgroup.com
Meritain Health to Offer Aetna Signature Administrators
For Meritain, already one of the largest independent health plan administrators in the country, the Aetna Signature Administrators PPO network option is another example of how the company is using its size and strength to create compelling health plan offerings for its clients. The Aetna network option is also in keeping with Meritain’s commitment to help employers control the long-term cost of health care while providing superior customer service and flexibility.
Ian Gordon, President of Meritain Health, said, “We are thrilled to be working with Aetna who has an outstanding national network of providers. Not only will we be able to offer clients even more attractive cost savings opportunities, but we will also be able to penetrate new markets where the Aetna network is particularly strong.”
Dan Fishbein, M.D., Head of Aetna’s Health Plan Alliances Business notes, “We are very excited to partner with Meritain Health. Their administrative expertise and excellent reputation for serving the self-funded community create a natural partner for Aetna Signature Administrators.”### About Meritain Health
Meritain Health is one of the country’s largest independent providers of services for self-funded health plans. Meritain Health serves over 400 self-funded clients nationally, with nearly 500,000 members in more than 30 major industries. The company provides plan administration, innovative wellness, medical management, disease management, network management, and cost management services. Meritain Health is also a pioneer and now the leading independent provider of Consumer Directed Health Plans. Meritain Health employs over 750 people, with regional offices in Baltimore, MD; Boston, MA; Canton, OH; Cleveland, OH; Columbus, OH; Evansville, IN; Houston, TX; Indianapolis, IN; Memphis, TN; St. Louis, MO; Okemos, MI; as well as the company headquarters in Buffalo, NY. www.meritain.comAbout Aetna
Aetna is one of the nation’s leading diversified health care benefits companies, serving approximately 29.8 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans and government-sponsored plans. www.aetna.com
Prodigy Health Group Acquires American Health Holding, Leading Provider of Comprehensive Care Management
WESTPORT, CT and COLUMBUS, OH, April 25, 2006 - Prodigy Health Group Inc., a health care services company, today announced that it has acquired American Health Holding, Inc. (AHH), one of the nation's largest providers of comprehensive medical management services supporting a population of over 3 million people. Prodigy Health Group is majority owned by an investor group led by Caxton-Iseman Capital, Inc., a New York-based private equity firm. Financial terms of the transaction were not disclosed.
AHH is one of the leading outsourcers of medical management operations to regional benefit administrators, health and welfare groups, HMOs, PPOs and self insured employer groups. AHH offers the full spectrum of care management services, including wellness programs and member education, 24x7 nurse support and health coaching, and diagnostic screening and disease prevention programs for healthy persons to the most advanced disease management for patients with chronic illnesses. The company was founded in 1993 in Columbus, Ohio, where it maintains its headquarters, client service and core operations.
The AHH management team, under the leadership of Michael J. Reidelbach, President and Chief Executive Officer, will remain in place following completion of the transaction.
Elliot Cooperstone, CEO of Prodigy Heath Group, said: "The acquisition of a total health management business is a critical step in the development of Prodigy Health Group. We are pleased that in American Health Holding we are adding the provider of a most comprehensive medical management product line. The continued escalation of healthcare costs, driven in particular by people with chronic illness, stimulates demand for AHH's services, creating a significant growth opportunity for Prodigy Health Group. AHH is leveraging its capabilities and large customer base to address the demand for advanced disease management services, which is expected to grow significantly over the next few years. We look forward to working with Michael Reidelbach and his team to grow AHH's existing product offering and to extend the company's services to the clients of our existing businesses."
According to the Centers for Disease Control, people with chronic health conditions now account for 78% of all medical costs, 76% of all admissions, 78% of prescriptions, and 72% of all office visits. Some form of medical management is being implemented by 97% of all health plans and 71% of employers are increasing or plan to use organized disease management to provide care and support to the chronically ill.
Mr. Reidelbach added: "Joining forces with Prodigy Health Group will give AHH access to the resources necessary to fully capitalize on the huge potential of our business. As part of Prodigy Health Group, AHH will offer even more extensive services to our clients and will continue to be a terrific place for our employees to work. We have an exciting future ahead of us."
Steven M. Lefkowitz, a Managing Director of Caxton-Iseman Capital and Chairman of the Prodigy Health executive committee of the board of directors, said: "We are very pleased by the progress of our investment in Prodigy Health. The company has now acquired one of the leading care management companies in American Health Holding. We look forward to continuing to work with Elliot Cooperstone and his talented team to grow the value of Prodigy Health and to expand services for the benefit of members, employers, and health plan payers."
About American Health Holding, Inc.
Founded in 1993, American Health is a full-service medical management firm. The company offers services that span the healthcare continuum, including Utilization and Case Management, Out-of-Network Discounts, Referral Authorization, Health- e Outlook (wellness web portal), Tomorrow's Child (maternity management) and the Club Health wellness and D isease Management program. American Health holds multiple URAC accreditations. For further information about American Health Holding, visit the website: www.AmericanHealthHolding.com.
About Prodigy Health
Prodigy Health Group is a health services holding company. Prodigy Health Group operating companies provide benefits management, total health management, provider network services and insurance services to self-funded employers, managed care companies and insurers. Prodigy Health companies serve over 3.5 million members across all industry sectors.
About Caxton-Iseman Capital, Inc.
Caxton-Iseman Capital, Inc. is a New York-based private equity firm. In addition to Prodigy Health, its portfolio companies include Ply Gem Industries, Inc., a manufacturer of vinyl building products; Anteon International Corporation (NYSE: ANT), an information technology provider to the Federal government; Buffets Inc., the leading owner and operator of buffet-style restaurants; and Electrograph Systems, Inc., a leading national distributor of display technology solutions. Caxton-Iseman's investment vehicles have available capital in excess of $2 billion.