Business
Coventry buys First Health
NEWS IN BRIEF — Posted Nov. 8, 2004
Bethesda, Md.-based Coventry Health Care announced in October that it planned to purchase Illinois-based First Health Group. It's a move expected to provide Coventry with a long-sought opportunity to win more commercial and government contracts across the nation as an administrative services vendor.
The deal is valued at $1.8 billion in cash and stock.
First Health, based in Downers Grove, Ill., is focused on providing administrative services including PPO network coordination to large, self-insured employer groups, workers' compensation and state government agencies. It operates in every state.
First Health will become a subsidiary of Coventry. The deal, subject to regulatory approvals and the agreement of First Health shareholders, is expected to close in the first quarter of 2005, Coventry said.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/11/08/bibf1108.htm.
