business
Tufts moves to acquire Medicaid managed care plan
NEWS IN BRIEF — Posted March 14, 2011
Tufts Health Plan announced March 1 that it signed a memorandum of understanding to buy a majority share in Network Health, a Medicaid managed care plan owned by Cambridge Health Alliance, a hospital chain serving Boston's northern suburbs.
The announcement came weeks after Tufts, based in Watertown, Mass., and Harvard Pilgrim Health Care, based in Wellesley, Mass., announced that they signed a memorandum of understanding to explore a potential merger.
Harvard Pilgrim has more than 1 million members in Maine, Massachusetts and New Hampshire. Tufts has about 741,000 in Massachusetts and Rhode Island.
With the acquisition of Network Health, Tufts would add about 170,000 Medicaid beneficiaries to its rolls. Financial terms of the deal are pending.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/03/14/bibf0314.htm.