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HEALTHSOURCE SIGNS DEFINITIVE AGREEMENT TO PURCHASE INDIANA HMO

 HEALTHSOURCE SIGNS DEFINITIVE AGREEMENT TO PURCHASE INDIANA HMO
 CONCORD, N.H., April 10 /PRNewswire/ -- Healthsource Inc. (NASDAQ: HLTH), a leading operator of HMOs and managed health care services, announced today that it has signed a definitive agreement to acquire the preferred provider group health and group life insurance business and the HMO subsidiary of the United Farm Bureau Family Life Insurance Company (UFB-FLIC). Under the terms of the agreement and subject to various adjustments, Healthsource will pay UFB-FLIC $7.5 million cash as total consideration for the purchase. In addition, Healthsource will contribute approximately $2 million to capitalize a new wholly owned Indiana insurance company in order to operate the group insurance business.
 The HMO subsidiary of UFB-FLIC currently has approximately 21,000 members and more than $25.9 million in 1991 annual revenues. The group insurance business currently consists of approximately 19,000 insured members with 1991 annual revenues of $28 million. Both the HMO and group insurance businesses provide services statewide in Indiana.
 The close of the purchase is contingent upon receipt of an insurance license in the State of Indiana, approval of the transaction by the Indiana Insurance Department and satisfaction of certain other conditions.
 Norman C. Payson, MD, chief executive officer of Healthsource, Inc. said, "We are very pleased to have entered into a definitive agreement with the Farm Bureau for this acquisition and look forward to closing the sale in the near future. We believe this Indiana purchase will further strengthen Healthsource's position as a leading operator of managed care businesses in secondary markets."
 Healthsource, Inc. sponsors or manages HMOs in New Hampshire, Maine, North Carolina, South Carolina, Tennessee and New York and owns EBPA, the largest third-party claims administrator in New England. Healthsource also provides utilization review services and preferred provider networks primarily to self-insured employer plans and Blue Cross and Blue Shield of Vermont.
 -0- 4/10/92
 /CONTACT: Thomas Congoran or Tracey Turner of Healthsource, 603-225-5077, or Kerry Thalheim, 212-661-8030, or Kathy Waller, 312-266-7800, of The Financial Relations Board for Healthsource/
 (HLTH) CO: Healthsource, Inc. ST: New Hampshire, Indiana IN: HEA SU:


EG -- NE005 -- 7107 04/10/92 09:50 EDT
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Publication:PR Newswire
Date:Apr 10, 1992
Words:359
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