Bethesda-based Coventry Health Care, Inc. (NYSE: CVH), has agreed to purchase the Medicaid health plan business of Children's Mercy's Family Health Partners.
Kansas City-based Children's Mercy's Family Health Partners is managed by Children's Mercy Hospital. The group has an estimated 210,000 Medicaid total members with 155,000 members in the State of Kansas and the remaining members in the State of Missouri. The company brings in annual revenues of $450 million.
Coventry chief executive officer Allen F. Wise said the acquisition of Children's Mercy's Family Health Partners will expand its Medicaid operations and give the company a larger presence in Kansas and Missouri.
The addition will bring Coventry Medicaid recipients to nearly 900,000 in 10 states and more than 1.5 million members its Midwest seven-state region.
The transaction expected to close in the first quarter of 2012 could bring a slight increase to Coventry's 2012 earnings. Financial terms of the transaction were not disclosed.