Meritain Health, American Health and Scrip World are the branded names you may recognize if you work for an employer who uses Aetna to administer their health insurance and benefit plans. Prodigy operates in 15 states. You can read more about the divisions of Prodigy Health Group here. The press release states they will operate as their own group and entity but I wonder about the data? Subsidiaries share data today quite frequently while still no combining operations and created algorithms for queries to analyze data and members and as we know some of this gets sold for profit. Walgreens recently stated their intangible data business is worth $800 million.
The press release stated the acquisition should not impact the profitability one way or another so again, more data? This reminds me of another post I did not too long ago about judges and potential conflicts of interest as these daisy chain subsidiaries grow and it’s hard to stay on top of all of this. When legal decisions are made how do judges keep all of this straight if they are invested and own stock in companies as such? It was just about a month ago that Harvard decided they needed to do a study on the impact of mergers and acquisitions in healthcare today and boy do they have a lot to work on and investigate as it is spread all over the place and of course the impact we all want to know about is on the payable side. They are a little slow to begin this study but better late than never I guess. Here’s 3 judges that got caught up in the subsidiary daily chain with not keeping current on how some of the companies they were invested in had changed. You miss a year and you miss a lot just as these 3 operations go from private equity to a company that is traded on the open market.
Aetna will help you out here though so you don’t have to worry about this and can sit around and play their “Facebook” like game online and even contribute more data and basically keep many distracted on what’s really happening in the business world today. BD
3 Judges in Health-Care Lawsuits Caught Up In Potential Conflict of Interest-It’s Called Subsidiary Watch-Be Aware of Your Investments With Mergers and Acquisitions
HARTFORD, Conn., April 28, 2011 — Aetna (NYSE: AET) today announced that it has entered into an agreement to acquire Prodigy Health Group, the nation's largest independent third party administrator (TPA) of self-funded health care plans. Headquartered in New York City, Prodigy Health Group has approximately 600,000 medical members, approximately 450,000 pharmacy members, and operates in 15 states.
Aetna will acquire Prodigy Health Group from Prodigy Health Holdings, LLC, whose majority owner is One Equity Partners. The purchase price is approximately $600 million. Aetna expects to finance the acquisition with available resources. The transaction is subject to customary closing conditions, including Hart-Scott-Rodino antitrust regulatory approval. The transaction is expected to close in the second half of 2011 and, as financed, is projected to be neutral to Aetna's financial results in 2011 and modestly accretive in 2012.
Prodigy Health Group operates under three business names: Meritain Health for its TPA benefits business; American Health for its medical management business; and Scrip World for its pharmacy benefits management business. Following the close of the transaction, Prodigy Health Group will be a subsidiary of Aetna and will operate as a separate business. Prodigy Health Group will maintain its current management and operating structure and compete under its own brands.