The deal is worth 3.1 billion so a large acquisition in progress. Multiplan is the largest independent PPO in the US since 2006. You can see trending with health insurance and managed care coming once again to the forefront of investors and how this plays out we are not sure yet.
The entire idea here with MultiPlan is to save money and there are links on the site for payers, providers and patients. The company is some what of another 3rd party in healthcare that runs cost algorithms and located providers within their participating networks, they process and help file medical claims.
The ValuePoint program will get providers and patients enrolled and affiliated with United HealthGroup via AARP for insurance coverage, so this is what it appears to be a mainstream marketing effort here with more providers, patients and payers with United. We keep seeing United popping up with s long reaches all throughout healthcare today and even in some areas you might not even think about and the link below is from April of 2010.
In essence the investors appear to be banking on the fact that more will be enrolling through MultiPlan and using Optum Health Allies from United Health Group and using their algorithms for saving money and wellness. You can follow the link below to find out about a few more of the UnitedHeatlhGroup subsidiaries and what they are doing where I had mentioned the fact that private equity groups are out looking to invest in the payer side of healthcare. We pay for all these groups through higher premiums for the algorithms they provide to keep cost contained, an extra added 3rd party situation that exists all through out the US system.
Consumer Watchdog Warns Sebelius on Health Insurers – Good Reason for This as Insurer Subsidiaries Are in The Game to Play Just As Private Equity Groups Diversify and Collaborate Holdings
I often wonder if we didn’t have so many middle people involved with so many transaction fees if the cost to consumers would drop. BD
From the MultiPlan Website:
“Founded in 1980, MultiPlan is the nation's oldest and largest supplier of independent, network-based cost management solutions. With more than half a million healthcare providers under contract, an estimated 40 million consumers accessing our network products, and some 70 million claims processed through our networks each year, we're the right choice for healthcare payers and providers, who today face unprecedented cost and competitive pressures.
We're large enough to offer solution breadth and depth, yet nimble enough to tailor our solutions to the evolving needs of payers and providers. And, we're also the only company that can offer access to the leading independent national primary PPO, as well as our complementary network and fee negotiation services through a single electronic claim submission.”
As a participant in the ValuePoint by MultiPlan network, you can expect to see patients who are members of the OptumHealth Allies/UnitedHealth Allies discount program. OptumHealth Allies (also marketed as UnitedHealth Allies) is a discount program administered by OptumHealth Allies, Inc., a UnitedHealth Group company. OptumHealth Allies is not insurance; rather, it is a money-saving program that offers discounts on many health and wellness products and services. However, OptumHealth Allies is sometimes used in conjunction with an insurance program, as is the case with AARP.”
July 9 (Bloomberg) -- BC Partners Ltd., manager of a 5.8 billion-euro ($7.4 billion) private equity fund, and Silver Lake Partners of the U.S. said they agreed to buy medical-care provider Multiplan Inc.
The two firms will be “equal equity partners,” they said today in a statement, without disclosing the terms of the acquisition. They are purchasing the New York-based network of health-care providers from Carlyle Group and Welsh, Carson, Anderson & Stowe in a transaction valuing the company at $3.1 billion, said two people with knowledge of the deal.