UNITED HEALTHCARE REACHES DEFINITIVE AGREEMENT FOR PURCHASE OF OHIO HEALTH PLAN
UNITED HEALTHCARE REACHES DEFINITIVE AGREEMENT
FOR PURCHASE OF OHIO HEALTH PLAN
MINNEAPOLIS, Nov. 5 /PRNewswire/ -- United HealthCare Corporation (NYSE: UNH) said it has signed a definitive agreement to purchase Columbus, Ohio-based Physicians Health Plan Corporation (PHPCO), owner of a 154,000-member Physicians Health Plan of Ohio, Inc. Conclusion of the purchase is subject to receipt of regulatory and PHPCO shareholder approval.
The PHPCO board of directors voted last night to accept United HealthCare's offer of a base purchase price of $54.52 million cash plus PHPCO cash beyond PHPCO's regulatory and working capital needs. The amended UHC offer reflcts an approximately $3.5 million increase over its initial cash and earnout offer.
United HealthCare Chairman and Chief Executive Officer William W. McGuire said the company raised its offer slightly following PHPCO's receipt of an unsolicited competing bid. McGuire said the company is pleased with the successful conclusion of its negotiations with PHPCO and is very comfortable with the agreed-upon terms. "PHP of Ohio will be an excellent addition to the United HealthCare's national network of health plans, as a leader in its market and with an excellent provider network and relationships. And we know that United HealthCare can bring excellent added value to the community PHP services. We look forward to bringing PHP of Ohio into our company."
United HealthCare Corporation is the nation's leader in health care management, serving both the providers and purchasers of health care since 1974. The company's services include HMOs, PPOs, multiple option and point of service plans, pharmaceutical cost management, managed mental health and substance abuse services, utilization management, workers compensation/casualty service, specialized provider networks, employee assistance services, Medicare and managed care programs for the aged, health care evaluation services, information systems and administrative services.
/CONTACT: David P. Koppe, 612-939-7760 or Noreen L. Suntrup, 612-936-1125, both of United HealthCare/ CO: United HealthCare ST: Minnesota IN: HEA SU: TNM DS,KH -- MN004 -- 1152 11/05/91 10:08 EST