WAYNE, PA – The Health Care Service Corporation (HCSC), an independent licensee of the Blue Cross and Blue Shield Association, announced Friday the completion of its merger with MEDecision, a Wayne, pa.-based provider of healthcare management services.
The companies had announced plans for the merger agreement in June.
HCSC bills itself as the largest customer-owned health insurer in the United States and fourth largest health insurer in the country overall, serving 12.4 million members in Illinois, New Mexico, Oklahoma and Texas. The union with MEDecision will help HCSC manage the health of its members to improve quality and affordability of care, HCSC officials said.
The deal allows the Chicago-based Health Care Service Corporation, one of MEDecision’s biggest customers, to acquire all outstanding MEDecision shares for $7 per share in cash, a transaction valued at approximately $121 million.
"Joining forces with MEDecision will enhance our ability to be an industry leader in healthcare management and wellness, which is vital to our future success," said Pat Hemingway Hall, HCSC's president and chief operating officer. "Moreover, the technological capabilities that MEDecision provides will help us tackle the underlying costs of healthcare and enable us to contribute significantly to better health and less health care spending for our members."
David St. Clair, MEDecision's founder and chief executive officer, said the merger agreement underscores the strength of MEDecision's collaborative healthcare management solutions and validates the company's vision of the healthcare industry, shared by HCSC.
"This agreement with HCSC will enable us to further expand our technology development and strengthen our focus on both our independent plan and Blue Cross Blue Shield customers," he said. "MEDecision will continue its mission of improving the relationship between patients, payers and providers as an independent company, and we look forward to contributing significantly to the future shape of the healthcare industry."
