EMPHESYS unit to acquire Chicago-based dental HMO.GREEN BAY, Wis.--(BUSINESS WIRE)--Feb. 17, 1995--A unit of EMPHESYS Financial Group Inc. (NYSE NYSE See: New York Stock Exchange : EFG EFG Electric Field Gradient EFG Edge-defined Film-fed Growth EFG European Financial Group EFG European Federation of Geologists EFG Egyptian Financial Group EFG Epic Fail Guy EFG Earth Federation Government (Mobile Suit Gundam) ) has reached an agreement to acquire TDC/The Dental Concern, Ltd., one of the Midwest's largest dental HMOs. The company did not disclose terms of the agreement. The closely held A phrase used to describe the ownership, management, and operation of a corporation by a small group of people. In a closely held corporation, the same people often act as shareholders, directors, and officers, and no outside investors exist. TDC TDC Top Dead Center TDC Time-to-Digital Converter TDC Tabular Data Control TDC Total Development Cost TDC Texas Department of Corrections TDC The Discovery Channel TDC Torpedo Data Computer TDC Theater Deployable Communications provides pre-paid dental plans to about 37,500 members in the Illinois and Northern Indiana Northern Indiana is the region of Indiana including 26 counties bordering parts of Illinois, Michigan, and Ohio. The area is generally sub-classified into other regions. The northwest is economically and culturally intertwined with Chicago, and is considered part of the Chicago area and 4,500 in the St. Louis metropolitan area. The acquisition by EMPHESYS subsidiary Employers Health Insurance Co. will bring more than 526,000 members covered by EMPHESYS-affiliated dental plans. TDC is the Chicago area's second largest dental HMO network HMO network Managed care An HMO that contracts with local hospitals to provide in-patient medical services, and with 2 or more independent groups of physicians to provide health services; the group is paid a set amount per HMO enrollee per month; in some, staff , with 460 dentists there, including 110 specialist dentists. The acquisition is the latest step in the EMPHESYS strategy of offering a full range of employee benefit products to small employers, and of migrating that business into the most cost-effective managed care plans available, EMPHESYS said. "Just as our managed care medical plans allow consumers to get more for their money, we now see managed dental plans becoming increasingly attractive - to both employers and consumers - for the same reasons," said Greg Wolf, president of EMPHESYS and Employers Health Insurance. "Our agreement will allow consumers to benefit from the technical expertise of TDC in managed care dental plans and the national markets and distribution provided by Employers Health thereby allowing us to grow beyond our existing markets," said Fred L. Horowitz, D.M.D., President of TDC. Pre-paid dental plans such as those Employers Health will offer through TDC typically cost 20 to 30 percent less than fee-for-service dental plans, according to EMPHESYS' analysis. Because a pre-paid dental plan rewards dentists when their patients have good oral health, the motivations of dentists, patients, and the insurance carriers coincide to promote better preventive care, Wolf added. The Transaction is subject to regulatory approval and the approval of the TDC shareholders. Employers Health Insurance is the principal operating unit operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon of EMPHESYS Financial Group of Green Bay, Wis. It focuses on providing managed care medical insurance to businesses with two to 150 employees nationwide. The company also provides administrative services and managed care access to larger businesses' self-funded health plans in selected markets. Employers Health provides a wide range of employee benefits in addition to dental and medical plans, including short-and long-term disability insurance, group term life insurance and flexible spending accounts flexible spending account, n an employee reimbursement account primarily funded with employee-designated salary reductions. Funds are reimbursed to the employee for health care (medical and/or dental), dependent care, and/or legal expenses and are (Section 125 plans.) Employers Health has 1.1 million members nationwide, including some 90,000 in Illinois. EMPHESYS has total assets of about $806.2 million. CONTACT: EMPHESYS Financial Group Inc., Green Bay Media contact: Jerry Ganoni, 800-558-4444, Ext. 7602 Investor contact: Wayne Micksch, 800-558-4444, Ext 5210 |
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