Magellan Health Inc. struck a deal this month to acquire Senior Whole Health (SWH), a provider of Medicare and Medicaid to dual-eligible clients in Massachusetts and New York.
Acquiring SWH, a privately owned company, will allow Magellan to add SWH's cultural model and expertise as it expands into the Massachusetts Senior Care Options (SCO) program and New York City's managed long-term care (MLTC) market. Magellan operates specialized managed care plans focused on complex populations in Florida and Virginia.
"Senior Whole Health is a well-regarded, quality health plan that has served government-sponsored programs since 2004," Magellan Health Chairman and CEO Barry Smith said. "This acquisition will enhance Magellan's geographic reach, membership and expertise in the MLTC market, leveraging Senior Whole Health's intimate knowledge of both the Massachusetts and New York markets. Our companies are a great fit culturally, with an individualized approach to member care and service, as well as an eye toward new and innovative ways of helping our members live healthy, vibrant lives."
The agreement includes a $10 million contingent payment, which is part of the $400 million acquisition. After approval under the Hart-Scott-Rodino Antitrust Improvements Act and other required state and federal regulatory approvals, the deal is expected to close in the first quarter of 2018.
"We are excited to be joining Magellan at such an opportune time," Senior Whole Health Chairman and CEO Wayne Lowell said. "Magellan's commitment to integrated, member-centric care is exactly how we've approached our work over the past 13 years. As states look to managed care organizations to help improve care and better manage costs, Magellan is uniquely positioned to lead across the long-term care space."
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