New York's Lutheran Medical Center Sells Medicaid HMO for $85M

Brooklyn, N.Y.-based Lutheran Medical Center has agreed to sell Health Plus, its Medicaid managed-care plan, to health insurer Amerigroup Corp. for $85 million, according to a Crain's New York Business report.

Lutheran established Health Plan in 1984, and it currently serves 320,000 members in the state's Medicare, Medicaid, Family Health Plus and Child Health Plus programs, according to the report.

Health Plus is expected to bring in roughly $1 billion in revenue this year as New York has the second-largest Medicaid enrollment in the country — nearly 5 million beneficiaries.  

The transaction is expected to close in the first half of 2012, pending regulatory approvals and other closing conditions.

Related Articles on Medicaid HMOs:

Consumer Reports: Medicaid HMOs in Northeast Among the Top-Ranked
Florida Governor Signs Medicaid Overhaul, Shifts Program to Managed Care
Enrollment in Managed Medicaid Plans on the Rise

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars

>