UnitedHealthcare, a UnitedHealth Group company, has agreed to acquire XLHealth Corp., a sponsor of Medicare Advantage health plans with a primary focus on Medicare recipients with special needs, such as those with chronic illness, and those also eligible for Medicaid.
Baltimore, Md.-based XLHealth plans to expand its business into Wisconsin in 2012.
XLHealth's expertise in improving care for Medicare beneficiaries with elevated health risks, which includes its innovative and nationally recognized clinical model of care, will enhance UnitedHealthcare's Medicare Advantage portfolio.
The acquisition will allow UnitedHealthcare to better serve chronically ill and dual eligible members.
The all cash transaction is subject to customary regulatory approvals. The acquisition is expected to close during the first half of 2012, and is expected to be accretive to UnitedHealth Group earnings per share.
"Combining XLHealth's substantial capabilities and outstanding employees serving high-risk, chronically-ill Medicare beneficiaries with UnitedHealthcare's breadth in both Medicare and Medicaid will significantly enhance our ability to serve older Americans," said Gail Boudreaux, CEO of UnitedHealthcare, which does business in Wisconsin. "As more Americans enter Medicare with multiple chronic conditions, including many who are also eligible for Medicaid, health plans that deliver effective complex care management can make an enormous difference in the quality of care beneficiaries receive. We greatly admire the work of the XLHealth team and look forward to leveraging XLHealth's clinical management expertise to better serve our membership."
"We are excited to be joining forces with UnitedHealthcare and look forward to realizing the many benefits of this merger," said Frederick C. Dunlap, chairman and CEO of XLHealth.
United Healthcare to acquire XLHealth Corp.
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