Ingenix to buy medical-necessity review company

NEWS IN BRIEF — Posted Aug. 23, 2010

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Ingenix, an Eden Prairie, Minn.-based subsidiary of UnitedHealth Group, has announced that it will buy Executive Health Resources, which helps hospitals meet Medicare and Medicaid requirements for medical necessity review.

Executive Health Resources, based in Newton Square, Pa., employs physicians who review cases to ensure that care complies with Medicare and Medicaid rules, or appeal on hospitals' behalf when payment is denied. It was founded in 1997.

Financial terms of the deal were not disclosed, but analysts placed the value between $1 billion and $1.5 billion.

The acquisition, announced Aug. 4, is Ingenix's second hospital-service purchase this summer. Ingenix announced in July that it will buy Picis, a company based in Wakefield, Mass. Picis makes software that helps hospitals integrate clinical and financial records for patients in the emergency department, surgery or intensive care.

Note: This item originally appeared at

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