Beyond Benefits Inc. Acquires Health Care Evaluation Inc.

LONG BEACH, Calif.--(BUSINESS WIRE)--Nov. 1, 1999--

Beyond Benefits Inc. has purchased the assets and client base of Health Care Evaluation Inc. (HCE), according to Barbara E. Rodin, Ph.D., president of Long Beach-based Beyond Benefits.

Founded in 1968, HCE is based in Stockton, Calif., and provides nationwide utilization management, case management, claims review and hospital bill audit services. The company -- whose clients include Taft-Hartley trust funds, school districts, county governments, provider networks and third party administrators -- is accredited by the American Accreditation HealthCare Commission/URAC.

Beyond Benefits is a PPO holding company that was formed earlier this year by George J. Bregante (former president and chief operating officer of Beech Street), Barbara E. Rodin, Ph.D., (former president and chief executive officer of BPS Health Care) and Asim Ashary (former chief financial officer of BPS Health Care).

Beyond Benefits already owns two of the largest national PPOs. In May of this year, the company acquired Preferred Health Network (PHN) from Foundation Health Systems Inc., and then announced the acquisition of HealthStar Inc. in September (transaction is scheduled to close in early December). Together, these PPOs serve more than 6 million individuals, and are contracted with more than 2,700 hospitals and 280,000 physicians.

"The acquisition of HCE is an important addition to our growing company, providing us with a significant resource in the crucial area of medical management," said Dr. Rodin. "The size of our national network and enrollment base -- and now the scope of our medical management resources -- make us one of the largest independent PPO service companies in the U.S. We are very well-positioned to be a one-stop replacement for the multiple PPO used by most payers, and to also capitalize on the exodus of consumers from HMOs into health plans that offer greater freedom of choice."

HCE will now become a wholly owned subsidiary of Beyond Benefits. Jeff Roby, president of HCE, has been named to the same position in the new company and Peggy Hoover will serve as vice president of operations. All of HCE's current employees have agreed to transfer to the new company, which will remain headquartered in Stockton.

"Our goal with this acquisition is to provide complete continuity of service to HCE's existing clients," said Roby. "We're excited about the opportunity to team up with a world-class national PPO network because it will provide us with even greater resources to serve our clients."

No financial terms were disclosed regarding the acquisition.