Anthem, Inc. to Acquire MMM Holdings, LLC and Affiliates From InnovaCare Health, L.P.
February 02 2021 - 8:00AM
Business Wire
Move expands Insurer’s presence in Medicare and
Medicaid with acquisition of vertically integrated health plan
Anthem, Inc. (NYSE:ANTM) today announced that the company has
entered into an agreement with InnovaCare Health, L.P., to acquire
its Puerto Rico-based subsidiaries, including MMM Holdings, LLC
(“MMM”) and its Medicare Advantage (MA) plan MMM Healthcare, LLC as
well as affiliated companies and Medicaid plan.
“We are pleased to expand Anthem’s commitment to serve Medicare
and Medicaid-eligible individuals and consumers to Puerto Rico. We
remain focused on providing services that drive greater value while
giving members access to care and services that meet their diverse
needs, enhance their experience, and help them lead healthier
lives,” said Gail K. Boudreaux, President and CEO, Anthem, Inc.
MMM is Puerto Rico’s largest MA plan and one of the
fastest-growing vertically integrated healthcare organizations in
the United States. With more than 267,000 MA members and over
305,000 Medicaid members, MMM represents the ninth-largest MA plan
in the country and second-largest Medicaid plan on the island of
Puerto Rico. MMM seeks to provide its members with a whole-health
experience through its network of specialized clinics and wholly
owned independent physician associations (IPAs) Castellana
Physicians Services and PHM as well as independent IPAs; together
the MMM network includes more than 10,000 healthcare providers and
more than a dozen offices across Puerto Rico. MMM holds the only
4.5 Stars MA contract in Puerto Rico from the Centers for Medicare
and Medicaid Services (CMS).
“This transaction aligns with Anthem’s vision to be an
innovative, valuable and inclusive healthcare partner by providing
care management programs that improve the lives of the people we
serve,” said Felicia Norwood, EVP and President, Government
Business Division for Anthem, Inc. “Our approach to the
whole-health needs of our members and a focus on addressing the
social drivers of health will enable us to make a positive
difference in the health of our communities.”
Anthem is acquiring MMM from InnovaCare Health, L.P. a leading
integrated, value-based payor and provider service organization and
a portfolio company of global growth equity investor Summit
Partners. Financial terms of the transaction were not disclosed.
The acquisition is expected to close by the second quarter of 2021
and is subject to approval by the Commonwealth of Puerto Rico
regulatory authorities, standard closing conditions and customary
approvals required under the Hart-Scott-Rodino Antitrust
Improvements Act. The company’s 2021 EPS guidance remains unchanged
as a result of this acquisition.
Anthem’s legal advisors are White & Case LLP and Faegre
Drinker Biddle & Reath LLP. Credit Suisse is acting as lead
financial advisor and J.P. Morgan Securities LLC is also acting as
financial advisor for InnovaCare. Kirkland & Ellis LLP and
Epstein Becker & Green, P.C. are acting as legal advisors for
InnovaCare.
About Anthem, Inc.
Anthem is a leading health benefits company dedicated to
improving lives and communities, and making healthcare simpler.
Through its affiliated companies, Anthem serves more than 107
million people, including approximately 43 million within its
family of health plans. We aim to be the most innovative, valuable
and inclusive partner. For more information, please visit
www.antheminc.com or follow @AnthemInc on Twitter.
About InnovaCare Health
Based in White Plains, N.Y., InnovaCare Health improves the
lives of members and physicians through innovative solutions for
value-based healthcare. Through an integrated portfolio of health
plans, medical service organizations, clinical networks and more,
the company manages more than 500,000 lives, including more than
150,000 dual-eligible beneficiaries. InnovaCare’s Medicare
Advantage plans have received NCQA accreditation and 4.5-star
quality ratings from the Centers for Medicare and Medicaid Services
(CMS). For more information, please visit innovacarehealth.com or
follow us on Facebook or LinkedIn.
Forward-Looking Statements
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the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements reflect our views about future
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statements are subject to certain risks and uncertainties, many of
which are difficult to predict and generally beyond our control,
that could cause actual results to differ materially from those
expressed in, or implied or projected by, the forward-looking
statements. You are cautioned not to place undue reliance on these
forward- looking statements that speak only as of the date hereof.
You are also urged to carefully review and consider the various
risks and other disclosures discussed in our reports filed with the
U.S. Securities and Exchange Commission from time to time, which
attempt to advise interested parties of the factors that affect our
business. Except to the extent otherwise required by federal
securities laws, we do not undertake any obligation to republish
revised forward-looking statements to reflect events or
circumstances after the date hereof. These risks and uncertainties
include, but are not limited to: the impact of large scale medical
emergencies, such as public health epidemics and pandemics,
including COVID-19, and catastrophes; trends in healthcare costs
and utilization rates; our ability to secure sufficient premium
rates, including regulatory approval for and implementation of such
rates; the impact of federal and state regulation, including
ongoing changes in the Patient Protection and Affordable Care Act
and the Health Care and Education Reconciliation Act of 2010, as
amended (collectively, the “ACA”) and the ultimate outcome of legal
challenges to the ACA; changes in economic and market conditions,
as well as regulations that may negatively affect our liquidity and
investment portfolios; our ability to contract with providers on
cost-effective and competitive terms; competitive pressures and our
ability to adapt to changes in the industry and develop and
implement strategic growth opportunities; reduced enrollment;
unauthorized disclosure of member or employee sensitive or
confidential information, including the impact and outcome of any
investigations, inquiries, claims and litigation related thereto;
risks and uncertainties regarding Medicare and Medicaid programs,
including those related to non-compliance with the complex
regulations imposed thereon; our ability to maintain and achieve
improvement in Centers for Medicare and Medicaid Services, or CMS
Star ratings and other quality scores and funding risks with
respect to revenue received from participation therein; a negative
change in our healthcare product mix; costs and other liabilities
associated with litigation, government investigations, audits or
reviews; the ultimate outcome of litigation between Cigna
Corporation and us related to the merger agreement between the
parties and the potential for such litigation to cause us to incur
substantial additional costs, including potential settlement and
judgment costs; risks and uncertainties related to our pharmacy
benefit management (“PBM”) business including non-compliance by any
party with the PBM services agreement between us and CaremarkPCS
Health, L.L.C.; medical malpractice or professional liability
claims or other risks related to healthcare and PBM services
provided by our subsidiaries; general risks associated with
mergers, acquisitions, joint ventures and strategic alliances;
possible impairment of the value of our intangible assets if future
results do not adequately support goodwill and other intangible
assets; possible restrictions in the payment of dividends from our
subsidiaries and increases in required minimum levels of capital;
our ability to repurchase shares of our common stock and pay
dividends on our common stock due to the adequacy of our cash flow
and earnings and other considerations; the potential negative
effect from our substantial amount of outstanding indebtedness; a
downgrade in our financial strength ratings; the effects of any
negative publicity related to the health benefits industry in
general or us in particular; failure to effectively maintain and
modernize our information systems; events that may negatively
affect our licenses with the Blue Cross and Blue Shield
Association; the impact of international laws and regulations;
changes in U.S. tax laws; intense competition to attract and retain
employees; and various laws and provisions in our governing
documents that may prevent or discourage takeovers and business
combinations.
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version on businesswire.com: https://www.businesswire.com/news/home/20210202005313/en/
Media Contact: Michelle Vanstory
Michelle.Vanstory@anthem.com
Investor Relations: Stephen Tanal
Stephen.Tanal@anthem.com
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