Aetna makes deal to ac­quire Prodigy Health for $600 mil­lion

Modern Healthcare - - Late News -

Aetna has en­tered into an agree­ment to buy New York-based third-party ad­min­is­tra­tor Prodigy Health Group in a deal val­ued at roughly $600 mil­lion. Prodigy Health Group is an in­de­pen­dent third-party ad­min­is­tra­tor of self-funded health­care plans, with 600,000 med­i­cal mem­bers and 450,000 phar­macy mem­bers, ac­cord­ing to an Aetna news re­lease. “We be­lieve that there are a num­ber of pos­i­tive syn­er­gies to be gained from our ac­qui­si­tion of Prodigy Health Group, in­clud­ing lever­ag­ing our provider net­works and (phar­macy ben­e­fit man­age­ment) ca­pa­bil­i­ties to grow mem­ber­ship and en­hance our abil­ity to de­velop cus­tom­ized net­works in ac­count­able care mod­els,” Joseph Zubret­sky, Aetna’s se­nior ex­ec­u­tive vice pres­i­dent and chief fi­nan­cial of­fi­cer, said in the re­lease. The trans­ac­tion is ex­pected to close in the sec­ond half of 2011. Af­ter the close of the deal, Prodigy Health Group will op­er­ate as a sep­a­rate sub­sidiary of Aetna and will re­tain its man­age­ment and brand.

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