WASHINGTON, Jan. 2, 2018 /PRNewswire/ -- Evolent Health, Inc.
(NYSE: EVH) ("Evolent"), a company providing an integrated
value-based care platform to the nation's leading health systems
and physician organizations, today announced the completion of
its acquisition of certain assets from New Mexico Health
Connections (NMHC). First announced on September 27, 2017, this strategic acquisition
brings together two innovative companies that will operate a new
health plan and managed services organization called True Health
New Mexico.
The transaction closed on the originally announced terms, with
Evolent acquiring assets related to the commercial business from
New Mexico Health Connections (NMHC) for $10.25 million in cash. The assets include a
commercial plan and health plan management services organization
with a tenured leadership team and employee base with extensive
experience working locally with providers to run NMHC's suite of
preventive, disease and care management programs. The assets are
being contributed to a new entity, True Health New Mexico, Inc., a
wholly-owned subsidiary of Evolent Health. As of December 31, 2017, the membership in the
commercial plan was just under 20,000
members.
The legacy NMHC entity expects to continue to operate as an
independent non-profit health care organization operating
throughout the state of New
Mexico, offering individual health insurance products. True
Health New Mexico expects to enter into a managed services
agreement with NMHC to support this ongoing individual
business.
"As part of Evolent Health, True Health New Mexico is now
positioned as a thriving alternative in the New Mexico commercial market. Working with our
physician partners, we will continue to deliver differentiated care
to our members and see multiple potential opportunities to grow
True Health New Mexico," said Dr. Martin
Hickey, CEO of True Health New Mexico and the former CEO of
NMHC.
To provide stability to our provider partners that will be
serving our commercial members as well as NMHC's individual
members, Evolent expects to extend a 15-month capital-only
reinsurance arrangement to NMHC, which is currently expected to be
approximately $10
million. Evolent's subsidiary, True Health New Mexico,
expects to underwrite the contract. The purpose of capital
only reinsurance is to provide balance sheet support to NMHC. There
is no transfer of underwriting risk to Evolent or True Health New
Mexico, and neither Evolent nor True Health New Mexico are at risk
for any cash payments on behalf of NMHC.
About Evolent Health
Evolent Health partners with leading provider organizations to
achieve superior clinical and financial results in value-based
care. With a provider heritage and over 20 years of health plan
administration experience, Evolent operates in more than 30 U.S.
health care markets, actively managing care across Medicare,
Medicaid, commercial and self-funded adult and pediatric
populations. With the experience to drive change, Evolent
confidently stands by a commitment to achieve results. For more
information, visit evolenthealth.com.
Forward-Looking Statements – Cautionary
Language
Certain statements made in this press release and in other written
or oral statements made by us or on our behalf are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 ("PSLRA"). A forward-looking statement is a
statement that is not a historical fact and, without limitation,
includes any statement that may predict, forecast, indicate or
imply future results, performance or achievements, and may contain
words like: "believe," "anticipate," "expect," "estimate," "aim,"
"predict," "potential," "continue," "plan," "project," "will,"
"should," "shall," "may," "might" and other words or phrases with
similar meaning in connection with a discussion of future operating
or financial performance. In particular, these include
statements relating to future actions, trends in our businesses,
prospective services, future performance or financial results and
the outcome of contingencies, such as legal proceedings. We
claim the protection afforded by the safe harbor for
forward-looking statements provided by the PSLRA. These
statements are only predictions based on our current expectations
and projections about future events. Forward-looking
statements involve risks and uncertainties that may cause actual
results, level of activity, performance or achievements to differ
materially from the results contained in the forward-looking
statements. Risks and uncertainties that may cause actual
results to vary materially, some of which are described within the
forward-looking statements, include, among others, certain risks
and uncertainties associated with the establishment of True Health
New Mexico, the acquisition of certain assets of NMHC and the entry
into a new services agreement with NMHC and new risks relating to
the business of NMHC which may divert management resources and
result in unanticipated costs, as well as the size, scope and other
risks related to any reinsurance arrangement with NMHC.
The risks included here are not exhaustive. Although we believe
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee our future results, level of
activity, performance or achievements. Our Annual Report on
Form 10-K for the fiscal year ended December
31, 2016, Quarterly Report on Form 10-Q for the quarter
ended September 30, 2017, Quarterly
Report on Form 10-Q for the quarter ended June 30, 2017 and other documents filed with the
SEC include factors that could affect our businesses and financial
performance. Moreover, we operate in a rapidly changing and
competitive environment. New risk factors emerge from time to
time, and it is not possible for management to predict all such
risk factors. Further, it is not possible to assess the effect of
all risk factors on our businesses or the extent to which any
factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements. Given these risks and uncertainties, investors
should not place undue reliance on forward-looking statements as a
prediction of actual results. In addition, we disclaim any
obligation to update any forward-looking statements to reflect
events or circumstances that occur after the date of this press
release.
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SOURCE Evolent Health, Inc.