WellCare Health Plans, Inc. (NYSE: WCG) has signed a definitive agreement to acquire certain assets, including Medicaid membership and certain provider contracts, from Phoenix Health Plan (PHP), a wholly owned managed care subsidiary of Tenet Healthcare. PHP provides health benefits primarily to more than 50,000 Medicaid beneficiaries as of Dec. 1, 2016 in Maricopa County, Arizona, the state’s largest geographic service area.
WellCare will work with PHP and Arizona Health Care Cost Containment System (AHCCCS) to ensure a smooth transition for members.
The transaction is expected to close by the second quarter of 2017, pending regulatory approvals, and other customary closing conditions. The financial terms of the transaction are not being disclosed. The transaction is expected to be funded with available cash on hand.
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