CNA acquires CoreSource Inc./Burgett & Dietrich.CHICAGO--(HealthWire)--June 26, 1996--CNA today announced the acquisition of the managed care division of CoreSource Inc., formerly known as Burgett & Dietrich. The CoreSource managed care division specializes in the development and management of community-based healthcare networks. The division operates 125 networks in 29 states serving 224 employers and 300,000 members. It manages over $300 million in annual expenditures for self-insured self-insured Self fund Health insurance adjective Referring to the practice of carrying an individual health insurance policy for oneself; self insurance is usually more expensive than group insurance clients. Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the H. Chookaszian, CNA (Certified NetWare Administrator) See Novell certification. chairman and chief executive officer, said, "This acquisition is an excellent strategic fit for CNA. We are committed to building on the CoreSource managed care division's healthcare business. The managed care division brings strong capabilities in partnering with provider and employer networks, as well as offering quality, cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. group healthcare products." As a wholly-owned subsidiary of CNA, the newly acquired managed care division will function as a decentralized de·cen·tral·ize v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es v.tr. 1. To distribute the administrative functions or powers of (a central authority) among several local authorities. , stand-alone business and will assume a new name: CNA Health Partners Inc. Orlo L. Dietrich, currently executive vice president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of CoreSource, will function as chief executive officer of CNA Health Partners Inc., following completion of the acquisition. The CoreSource managed care division has enjoyed continuing success in the healthcare market. The managed care division is founded on partnerships between employers and medical providers sharing similar community healthcare objectives. It developed the Primary Care Network (PCN 1. PCN - Program Composition Notation. 2. (communications) PCN - Personal Communication Network. (R)), a managed care network in which primary care physicians function both as doctors and case managers. The physicians' dual role enables PCN to offer premier, cost-effective healthcare. PCN contracts 8,249 primary care physicians, 10,777 specialists and is affiliated with 428 hospitals. In addition, the managed care division markets claims administration and a data analysis tracking system known as Data Capture and Analysis System (DCAS DCAS Department of Citywide Administrative Services (New York City) DCAS Downloadable Conditional Access System (digital television) DCAS Defense Contract Administration Services (DLA) (TM)). Historically, the managed care division has benefited from its solid relationships with consultants and brokers, as well as its direct sales force. This business approach will continue following the acquisition. Together, CNA and CNA Health Partners Inc. will expand CNA's marketing of group healthcare products and services to small and mid-sized employers in metropolitan and non-metropolitan areas. In addition, CNA Health Partners Inc. will continue marketing to employers via provider partnerships. Orlo L. Dietrich, executive vice president and chief operating officer of CoreSource, said beyond shared healthcare interests, CNA brings significant financial and operating strength to this acquisition. "We are pleased with the strong capital position and conservative investment philosophy of CNA. The healthcare units at CNA offer benefit plans that facilitate an informed choice. Coupled with this direction in the healthcare arena, we see the transaction as being a real success for both parties," he said. CNA is a registered service mark of CNA Financial CNA Financial Corporation (NYSE: CNA) is a financial corporation based in Chicago, Illinois, United States, and noted for its 600 foot tall red headquarters building there. Its principal subsidiary, Continental Casualty Company (CCC) was founded in 1897. Corp. The principal CNA companies are Continental Casualty Co., and Continental Assurance Co. Headquartered in Chicago, CNA is among the 10 largest U.S. insurance groups and is the largest U.S. commercial insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. . Loews Corp. owns 84 percent of the common stock of CNA Financial Corp. CONTACT: CNA, Chicago Carrie Rosen, 312/822-5819 carrie.rosen@cna.com |
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