COVENTRY CORPORATION COMPLETES ACQUISITION OF HEALTHCARE USA.NASHVILLE, Tenn.--(BUSINESS WIRE)--Aug. 1, 1995--Coventry Corporation (Nasdaq/NM:CVTY) today announced that it has completed its acquisition of HealthCare USA, a Jacksonville, Florida-based, managed care company, in a tax-free stock-for-stock transaction. HealthCare USA, an HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, with 27,000 Medicaid members in Jacksonville, has also developed Medicaid networks in St. Louis, Missouri, and Birmingham, Alabama Birmingham (pronounced [ˈbɝmɪŋˌhæm]) is the largest city in the U.S. state of Alabama and is the county seat of Jefferson County. . Earlier this year, HealthCare USA achieved the second highest rating among Florida Medicaid HMOs in a review conducted by The Florida Agency of Health Care Administration and the Company was awarded a commercial HMO license. Consideration for the transaction, which was accounted for as a pooling-of-interests, was Coventry common stock valued at approximately $45 million. The transaction is expected to be neutral to modestly accretive to Coventry's earnings per share in 1995. In Coventry's and HealthCare USA's existing service areas, there are approximately 750,000 Medicaid-eligible individuals. Furthermore, in the HealthCare USA expansion areas in Florida and in Birmingham, Alabama, there are an additional 450,000 Medicaid-eligible individuals. HealthCare USA was one of seven plans selected by the Missouri Division of Medical Services to deliver managed care services to more than 150,000 Medicaid recipients in St. Louis, Jefferson, St. Charles and Franklin counties. The St. Louis area is the first part of the state to be shifted to managed care from traditional fee-for-service delivery of healthcare services. The remainder of the state is scheduled for conversion to managed care by mid-1997. HealthCare USA currently has more than 1,000 doctors and 15 hospitals in its Missouri network and has begun enrolling St. Louis Medicaid recipients. Philip Hertik, President and Chief Executive Officer of Coventry, said, "With this one transaction, we accomplish the dual objectives of entering the Medicaid market and continuing our geographic expansion into the Southeast. Medicaid products, specifically, and all government-funded health care products, in general, represent virtually untapped membership potential in the markets we currently serve. This acquisition, in effect, gives us a platform of product and management expertise which will launch similar programs in our existing markets. Furthermore, HealthCare USA's commercial HMO license, when combined with our indemnity insurance indemnity insurance Managed care A type of health insurance in which a Pt can choose the hospital and provider, and the insurer reimburses the Pt or provider for a set percentage of the cost, minus deductibles and co-payments company product capabilities, will enable us to introduce a broad array of commercial products to employers and the general public in Florida." Coventry Corporation, headquartered in Nashville, Tennessee “Nashville” redirects here. For other uses, see Nashville (disambiguation). Nashville is the capital and the second most populous city of the U.S. state of Tennessee, after Memphis. , is a managed health care company that provides a wide range of health benefits to a broad cross section of employer groups employer group Association of employers Managed care An entity with a current group benefits agreement in effect with a health plan to provide covered health care services to its employee-subscribers and eligible dependents. in Pennsylvania, Ohio, West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. , Missouri, Illinois, Virginia and Florida. The Company operates from regional headquarters in Pittsburgh and Harrisburg, Pennsylvania This article is about the capital city of the Commonwealth of Pennsylvania. For other places named Harrisburg, see Harrisburg (disambiguation). Harrisburg is the capital of the Commonwealth of Pennsylvania, a state of the United States of America. ; St. Louis, Missouri; Richmond, Virginia Richmond IPA: [ɹɯʒmɐnɖ] is the capital of the Commonwealth of Virginia, in the United States. ; and Jacksonville, Florida “Jacksonville” redirects here. For other uses, see Jacksonville (disambiguation). Jacksonville is the largest city in the state of Florida and the county seat of Duval County. . CONTACT: Coventry Corp., Nashville Richard H. Jones, 615/391-2440 |
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