Cigna, Healthsource deal the latest in HMO merger trend
In yet another example of mergers within the managed care industry, Philadelphia-based Cigna Corp. has announced its intent to buy Healthsource Inc., a leading HMO in secondary markets.
The deal, subject to approval from government regulators, is priced at $21.75 a share. The purchase price includes $250 million of outstanding Healthsource debt.
Cigna’s health business operates in most states and covers 4.5 million people with traditional health insurance and 4.3 million in HMOs. Healthsource, founded in 1985 by a group of doctors, is based in Hooksett, NH, and serves 16 states, mostly in the Northeast, South, and Midwest.
Following are names and telephone numbers of sources quoted in this issue:
• Foster Higgins, New York City; John Erb, principal. Telephone: (212) 574-9050.
• Holt-Kroft Clinic, Fort Smith, AR; Steve Swift, executive director. Telephone: (501) 788-4000.
• Medical Directions, Dallas; Jim Pyle, senior vice president. Telephone: (214) 770-7870.
• Columbia College of Physicians and Surgeons, New York City; Linda J. Weiss, PhD, and Jim Blustein, MD, PhD, professors of medicine. Telephone: (212) 305-3595.
• Vancouver Clinic, Vancouver, WA; Neill T. Fishman, executive director. Telephone: (303) 254-1240.
• Sutherland Clinic, Memphis, TN; Charles Lock, administrator. Telephone: (901) 725-6708.
• HealthCare Partners, Los Angeles; Lynne Emma, RN, MPH, vice president of population health. Telephone: (818) 623-3065.