SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Magellan Health, Inc. (NASDAQ: MGLN) today announced it has closed on the acquisition of SWH Holdings, Inc. (Senior Whole Health), a privately held healthcare company focused on serving complex, high-risk populations, providing both Medicare and Medicaid dual-eligible benefits to more than 22,000 members in Massachusetts and New York.
Under the terms of the agreement, Magellan will acquire Senior Whole Health for approximately $400 million cash. This price is inclusive of a $10 million contingent consideration payment based on Senior Whole Health’s Medicare plan in Massachusetts receiving a Centers for Medicare & Medicaid Services (CMS) Star Rating of at least four for 2018. Earlier this month, Senior Whole Health’s Massachusetts plan achieved an overall 2018 Star Rating of 4.5 from CMS.
The acquisition provides Magellan with the opportunity to expand into the Massachusetts Senior Care Options (SCO) program, as well as further its presence in New York City’s managed long-term care (MLTC) market. Magellan has received necessary regulatory approvals for the merger of its existing New York MLTC plan, AlphaCare of New York, Inc. and its newly acquired New York MLTC plan, Senior Whole Health of New York, Inc. and plans to close on the merger at year end 2017 so as to more fully integrate its New York MLTC operations. Magellan Health plans to leverage Senior Whole Health’s sound, culturally competent clinical model and expertise as it seeks continued expansion in managed long-term services and supports (MLTSS).
“Since 2004, Senior Whole Health has maintained a strong reputation as a quality health plan serving individuals in both New York and Massachusetts, and we will continue to ensure that focus never wavers,” said Barry M. Smith, chairman and chief executive officer of Magellan Health. “This acquisition combines our companies’ expertise in the managed long-term care market allowing us to enhance our offerings to help members live healthy, vibrant lives.”
“Senior Whole Health has been a leader in managing chronic and specialty populations, and we are excited to be welcoming them to Magellan,” said Sam Srivastava, chief executive officer of Magellan Healthcare. “Over the next several months, we will work closely with the team from Senior Whole Health to ensure a smooth transition of services while continuing to maintain their outstanding reputation and strong track record of growth.”
Management will provide additional details about this acquisition during its third quarter 2017 earnings call, scheduled for November 1, 2017.
About Magellan Health
Magellan Health, Inc. is a leader in managing the fastest growing, most complex areas of health, including special populations, complete pharmacy benefits and other specialty areas of healthcare. Magellan supports innovative ways of accessing better health through technology, while remaining focused on the critical personal relationships that are necessary to achieve a healthy, vibrant life. Magellan's customers include health plans and other managed care organizations, employers, labor unions, various military and governmental agencies and third-party administrators. For more information, visit MagellanHealth.com.
