HUMANA SIGNS LETTER OF INTENT TO ACQUIRE HEALTHCHICAGO, INC.
HUMANA SIGNS LETTER OF INTENT TO ACQUIRE HEALTHCHICAGO, INC. LOUISVILLE, Ky., Jan. 21 /PRNewswire/ -- Humana Inc. (NYSE: HUM) and HealthChicago, Inc. announced today the signing of a letter of intent for Humana to acquire HealthChicago, a 65,000-member health maintenance organization (HMO) in the Chicago area. The transaction is subject to regulatory approval and the signing of a definitive agreement. Terms were not disclosed. The combined membership of Humana Michael Reese Health Plan and HealthChicago would be approximately 305,000, giving Humana the largest HMO in the Chicago area. Humana acquired the Michael Reese Health Plan last year. HealthChicago is a federally qualified independent practice association (IPA)-model HMO and the fifth-largest in the Chicago area. The HMO has contracts with more than 4,000 physicians and more than 50 area hospitals. Members' coverage would not change as a result of this proposed acquisition through the end of their current contracts. Health care services would continue to be offered from hospitals, physicians and other providers currently affiliated with HealthChicago. Humana, based in Louisville, owns and operates 79 hospitals, including Humana Hospital-Hoffman Estates and Humana Hospital-Michael Reese in Chicago. The company also has more than 1.7 million members -- 240,000 in Humana's Michael Reese Health Plan in the Chicago area -- in health benefit plans for employee groups and Medicare recipients. HealthChicago is based in Lisle, Ill., and is owned by three shareholder hospitals; Central DuPage Health System (Central DuPage Hospital), Memorial Health Services (Elmhurst Memorial Hospital) and Ingalls Health System (Ingalls Memorial Hospital). -0- 1/21/92 /CONTACT: Charles E. Teeple, 502-580-3613, or Tyree G. Wilburn, 502-580-1222, both of Humana, Inc./ (HUM) CO: Humana Inc.; HealthChicago, Inc. ST: Kentucky, Illinois IN: HEA SU: TNM
CM -- CH010 -- 1941 01/21/92 14:33 EST
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|Date:||Jan 21, 1992|
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